There’s A Lot To Like About Webster Financial’s (NYSE:WBS) Upcoming US$0.40 Dividend

Webster Financial Corporation (NYSE:WBS) stock is about to trade ex-dividend in 4 days. The ex-dividend date is one business day before a company’s record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Therefore, if you purchase Webster Financial’s shares on or after the 3rd of February, you won’t be eligible to receive the dividend, when it is paid on the 17th of February.

The company’s next dividend payment will be US$0.40 per share, on the back of last year when the company paid a total of US$1.60 to shareholders. Last year’s total dividend payments show that Webster Financial has a trailing yield of 3.1% on the current share price of $50.84. We love seeing companies pay a dividend, but it’s also important to be sure that laying the golden eggs isn’t going to kill our golden goose! That’s why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for Webster Financial

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Webster Financial paid out a comfortable 43% of its profit last year.

Generally speaking, the lower a company’s payout ratios, the more resilient its dividend…

Read more…