Covered, compounding. A 2.10% yield on a 30.28% trailing payout is well covered and still compounding — $0.88 a quarter, raised in July 2026 from $0.80 after a July 2025 raise from $0.75. Third-quarter 2026 earnings of $3.40 a share beat expectations, and the low payout leaves ample room for further raises.
Key risk: Market-linked fees — wealth management and asset servicing revenue tracks market levels, so a sustained market fall shrinks the earnings base behind the dividend faster than the payout rate moves.
Changes if: The trailing payout pushes well past 30.28%, or the dividend stops growing. Payout coverage is the tripwire here.
- ✓Payout-coverage check: 30.28% trailing payout ratio — low, leaving most earnings retained for growth and buybacks.
- ✓Yield check: 2.10% indicated — $0.88/qtr × 4 at the $167.92 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: Raised in July 2026, from $0.80 to $0.88, after a July 2025 raise from $0.75 to $0.80.
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.