Be Sure To Check Out TrustCo Bank Corp NY (NASDAQ:TRST) Before It Goes Ex-Dividend

Readers hoping to buy TrustCo Bank Corp NY (NASDAQ:TRST) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Meaning, you will need to purchase TrustCo Bank Corp NY's shares before the 2nd of December to receive the dividend, which will be paid on the 3rd of January.

The company's next dividend payment will be US$0.35 per share. Last year, in total, the company distributed US$1.36 to shareholders. Last year's total dividend payments show that TrustCo Bank Corp NY has a trailing yield of 4.3% on the current share price of $32.66. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

Check out our latest analysis for TrustCo Bank Corp NY

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. TrustCo Bank Corp NY paid out a comfortable 44% of its profit last year.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit TrustCo Bank Corp NY paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at TrustCo Bank Corp NY, with earnings per share up 6.7% on average over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. TrustCo Bank Corp NY has delivered an average of 0.6% per year annual increase in its dividend, based on the past 10 years of dividend payments.

The Bottom Line

Is TrustCo Bank Corp NY an attractive dividend stock, or better left on the shelf? TrustCo Bank Corp NY has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, TrustCo Bank Corp NY appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

Want to learn more about TrustCo Bank Corp NY's dividend performance? Check out this visualisation of its historical revenue and earnings growth.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

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.

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