The board of Peapack-Gladstone Financial Corporation (NASDAQ:PGC) has announced that it will pay a dividend on the 21st of August, with investors receiving $0.05 per share. The dividend yield is 0.8% based on this payment, which is a little bit low compared to the other companies in the industry.

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Peapack-Gladstone Financial’s Earnings Will Easily Cover The Distributions

Even a low dividend yield can be attractive if it is sustained for years on end.

Peapack-Gladstone Financial has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past data isn’t a guarantee for the future, Peapack-Gladstone Financial’s latest earnings report puts its payout ratio at 11%, showing that the company can pay out its dividends comfortably.

Over the next year, EPS is forecast to expand by 47.3%. If the dividend continues along recent trends, we estimate the future payout ratio will be 7.3%, which is in the range that makes us comfortable with the sustainability of the dividend.

NasdaqGS:PGC Historic Dividend July 25th 2025

View our latest analysis for Peapack-Gladstone Financial

Peapack-Gladstone Financial Has A Solid Track Record

Even over a long history of paying dividends, the company’s distributions have been remarkably stable. The most recent annual payment of $0.20 is about the same as the annual payment 10 years ago. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

The Dividend’s Growth Prospects Are Limited

The company’s investors will be pleased to have been receiving dividend income for some time. Although it’s important to note that Peapack-Gladstone Financial’s earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time. While EPS growth is quite low, Peapack-Gladstone Financial has the option to increase the payout ratio to return more cash to shareholders.

Peapack-Gladstone Financial Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don’t think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It’s important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Peapack-Gladstone Financial stock. Is Peapack-Gladstone Financial not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.