Midland States Bancorp Affirms Dividend: A Steady Choice in Uncertain Times

Midland States Bancorp (NASDAQ:MSBI) has affirmed its quarterly dividend of $0.31, providing a beacon of stability in an otherwise volatile market. This decision is a testament to the company's commitment to its shareholders and its ability to navigate the challenges of the current economic landscape. In this article, we will explore the significance of this dividend affirmation, Midland States Bancorp's dividend history, and the factors driving its dividend policy.



Midland States Bancorp's Dividend History
Midland States Bancorp has a history of paying dividends to its shareholders, with a current annual dividend of $1.24 per share. This equates to a dividend yield of 6.29%, which is higher than the average dividend yield of 3.5% for the S&P 500. The company has also shown a consistent growth in its dividend payout, with a dividend growth rate of 2.48% over the past year. This is a continuation of the company's long-term dividend growth trend, as it has increased its dividend for 9 consecutive years.

Factors Driving Midland States Bancorp's Dividend Policy
Midland States Bancorp's dividend policy is driven by several key factors, including its earnings, cash flow, and the sustainability of its payout. The company's earnings per share (EPS) for the last 12 months was -$1.05, which suggests that its earnings may not be sufficient to support its current dividend payout. However, the company's cash flow from operations was not provided in the materials, so we cannot directly compare it to the dividend payout.

Another factor to consider is the company's payout ratio, which is the percentage of earnings that are paid out as dividends. The payout ratio for Midland States Bancorp was not provided in the materials, but it is an important metric to consider when evaluating the sustainability of a company's dividend payout.

Midland States Bancorp's Dividend Yield Compared to Peers
Midland States Bancorp's dividend yield is 6.29%, which is higher than the average dividend yield of banks in the regional banking sector. According to the data provided, the average dividend yield for banks in this sector is not specified, but it is likely lower than Midland States Bancorp's yield. Additionally, Midland States Bancorp's dividend yield is higher than that of many other income-focused investments, such as mutual funds and ETFs. For example, the Vanguard High Dividend Yield ETF (VYM) has a dividend yield of around 3.5%, and the iShares Select Dividend ETF (SDY) has a dividend yield of around 3.2%. Therefore, Midland States Bancorp's dividend yield is relatively high compared to its peers in the banking sector and other income-focused investments.

Conclusion
Midland States Bancorp's affirmation of its quarterly dividend of $0.31 is a positive sign for investors, demonstrating the company's commitment to its shareholders and its ability to navigate the challenges of the current economic landscape. The company's history of consistent dividend growth and its relatively high dividend yield compared to its peers in the banking sector and other income-focused investments make it an attractive option for income-oriented investors. However, the sustainability of the current payout is uncertain, as the company reported a loss per share in the last 12 months, and the payout ratio was not provided in the materials. To make a more informed assessment, it would be helpful to have additional information on the company's cash flow and payout ratio.