Covered, compounding. A 3.19% yield on a 41.85% trailing payout is covered and still compounding — $0.52 a quarter, raised 13% in October 2026 from $0.46, alongside third-quarter earnings of $1.41 a share, up 34% year over year, and a 15.1% return on tangible common equity. The payout sits below half of earnings, so there is room for further raises if credit holds.
Key risk: Thinning capital cushion — the common equity tier 1 ratio slipped to 10.5% at September 30, 2026, and tangible common equity to 6.7%, so a credit turn would reach the dividend faster than at a better-capitalized peer.
Changes if: The trailing payout pushes well past 41.85%, or the dividend stops growing. Payout coverage is the tripwire here.
- ✓Payout-coverage check: 41.85% trailing payout ratio — below half of earnings, leaving room for raises if credit costs stay contained.
- ✓Yield check: 3.19% indicated — $0.52/qtr × 4 at the $65.14 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: Raised 13% in October 2026, from $0.46 to $0.52 per quarter.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.