Dividend Investing: Is Enterprise Financial Services (EFSC) Worth Your Hard-Earned Money?
Dividends are like the cherry on top of a well-invested sundae. They’re the icing on the cake, the bonus round, the little extra something that makes being a shareholder all the more delightful. But, as with all things that seem too good to be true, finding a great dividend stock is no easy feat.
Enterprise Financial Services: A Potential Dividend Darling?
Enterprise Financial Services Corp (EFSC) might just be the dividend darling you’ve been searching for. This financial services company, based in St. Louis, Missouri, has been consistently paying dividends since 1992. And not just any dividends, but ones that have been growing year after year.
Dividend Growth History
- From 1992 to 2001, EFSC’s dividend grew at an average annual rate of 15.4%.
- From 2002 to 2010, the growth rate slowed down to an average of 5.5%.
- But since 2011, the dividend growth has picked up again, with an average annual growth rate of 11.3%.
Now, you might be thinking, “11.3%? That’s not too shabby!” And you’re right. But what’s even more impressive is that EFSC has managed to increase its dividend for 30 consecutive years. That’s right, 30 years!
Why the Dividend Growth?
EFSC’s dividend growth can be attributed to its strong financial performance. The company has consistently reported solid earnings, thanks to its diverse business model and its focus on asset quality and risk management. Additionally, EFSC has a strong capital position, with a Tier 1 capital ratio of 11.8% as of December 31, 2020.
What Does This Mean for Me?
As a potential investor, the consistent dividend growth and the strong financial position of EFSC make it an attractive option. If you’re looking for a stable, reliable dividend stock, EFSC might just be the one for you. And with the company’s commitment to increasing its dividend each year, your dividend income could potentially grow over time.
What Does This Mean for the World?
The impact of EFSC’s dividend growth on the world might not be as immediately noticeable as, say, a new technology breakthrough or a major political event. But it does contribute to the overall health of the economy. Dividends represent a significant portion of personal income for many investors, and the growth of these dividends can help fuel consumer spending and economic growth.
Conclusion
In conclusion, Enterprise Financial Services Corp (EFSC) is a potential dividend darling, with a strong financial performance and a consistent track record of dividend growth. For potential investors looking for a stable, reliable dividend stock, EFSC might just be the one for you. And even if you’re not an investor, the consistent dividend growth of companies like EFSC contributes to the overall health of the economy.
So, the next time you’re considering adding a stock to your portfolio, don’t forget to consider the power of dividends. And if you’re looking for a dividend growth stock, Enterprise Financial Services might just be the cherry on top of your investment sundae.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.
