The board of Western Alliance (NYSE:WAL) Bancorporation has announced a 2.8% increase in its dividend to $0.37, effective from December 1st. The move brings the annual payout to 3.1% of its current stock price, aligning it with industry averages.
Despite only initiating dividends four years ago in 2019, the company's promising performance is underscored by an 18% payout ratio, demonstrating its ability to sustain dividends comfortably. Since the initiation of dividends, the company has shown an impressive growth rate of 9.5%, increasing its annual payment from $1.00 to $1.44.
Analysts are optimistic about Western Alliance Bancorporation's future prospects, forecasting a substantial earnings per share (EPS) growth of 28.7% over the next three years. They also predict that the future payout ratio will hover around a sustainable 17%, considering the company's robust EPS growth rate.
This combination of a short but robust dividend history, a promising payout ratio, and significant growth indicates that Western Alliance Bancorporation is effectively reinvesting its earnings and has the potential to raise dividends in the future.
InvestingPro Insights
In line with the article's focus on Western Alliance Bancorporation's dividends and future prospects, InvestingPro provides some valuable insights. According to InvestingPro Tips, the company has raised its dividend for five consecutive years, aligning with the article's emphasis on the firm's impressive dividend history. Furthermore, six analysts have revised their earnings upwards for the forthcoming period, reinforcing the optimistic outlook presented in the article.
Turning to the InvestingPro Data, Western Alliance Bancorporation has an adjusted market cap of 4980M USD and a low P/E ratio of 5.78 as of the last twelve months of Q3 2023, indicating the company is trading at a low earnings multiple. This is another InvestingPro Tip that strengthens the article's narrative of the company being a potentially lucrative investment. Additionally, the company has seen a substantial price uptick over the last six months, with a 58.3% total return, highlighting the significant return over the recent period.
InvestingPro offers further tips and data on Western Alliance Bancorporation and other companies, providing investors with a comprehensive view of the market landscape.
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