Covered, compounding. A 4.21% yield on a 47.06% trailing payout is covered and still compounding — $0.30 a quarter, raised in July 2026 by $0.035, extending 12 consecutive years of increases. The payout sits below half of earnings, so there is room for further raises if credit costs stay contained.
Key risk: Regional credit — a Southeast and Texas loan book leaves the dividend exposed to commercial real estate and consumer credit cycles, and to deposit costs rising faster than loan yields.
Changes if: The trailing payout pushes well past 47.06%, or the dividend stops growing. Payout coverage is the tripwire here.
- ✓Payout-coverage check: 47.06% trailing payout ratio — below half of earnings, leaving room for raises if credit costs stay contained.
- ✓Yield check: 4.21% indicated — $0.30/qtr × 4 at the $28.47 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: 12 consecutive years of increases; the latest raise, on July 15, 2026, lifted the quarterly dividend by $0.035 to $0.30.
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.