The board of SB Financial Group, Inc. (NASDAQ:SBFG) has announced that it will pay a dividend of $0.15 per share on the 29th of August. This payment means that the dividend yield will be 3.0%, which is around the industry average.

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SB Financial Group’s Earnings Will Easily Cover The Distributions

Solid dividend yields are great, but they only really help us if the payment is sustainable.

SB Financial Group has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Taking data from its last earnings report, calculating for the company’s payout ratio shows 34%, which means that SB Financial Group would be able to pay its last dividend without pressure on the balance sheet.

The next year is set to see EPS grow by 14.4%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 34% by next year, which is in a pretty sustainable range.

NasdaqCM:SBFG Historic Dividend July 25th 2025

See our latest analysis for SB Financial Group

SB Financial Group Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $0.152 in 2015, and the most recent fiscal year payment was $0.60. This works out to be a compound annual growth rate (CAGR) of approximately 15% a year over that time. It is good to see that there has been strong dividend growth, and that there haven’t been any cuts for a long time.

SB Financial Group May Find It Hard To Grow The Dividend

Some investors will be chomping at the bit to buy some of the company’s stock based on its dividend history. However, SB Financial Group has only grown its earnings per share at 4.7% per annum over the past five years. If SB Financial Group is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.

SB Financial Group Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For instance, we’ve picked out 1 warning sign for SB Financial Group that investors should take into consideration. Is SB Financial Group 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.