Commerce Bancshares, Inc.'s (NASDAQ:CBSH) investors are due to receive a payment of $0.275 per share on 24th of June. Including this payment, the dividend yield on the stock will be 1.7%, which is a modest boost for shareholders' returns.

We check all companies for important risks. See what we found for Commerce Bancshares in our free report.

Commerce Bancshares' Dividend Forecasted To Be Well Covered By Earnings

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

Commerce Bancshares has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 26%, which means that Commerce Bancshares would be able to pay its last dividend without pressure on the balance sheet.

Looking forward, EPS is forecast to rise by 10.9% over the next 3 years. Analysts forecast the future payout ratio could be 28% over the same time horizon, which is a number we think the company can maintain.NasdaqGS:CBSH Historic Dividend May 12th 2025

See our latest analysis for Commerce Bancshares

Commerce Bancshares Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was $0.526 in 2015, and the most recent fiscal year payment was $1.10. This implies that the company grew its distributions at a yearly rate of about 7.7% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.

Commerce Bancshares Could Grow Its Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Commerce Bancshares has impressed us by growing EPS at 9.9% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

We Really Like Commerce Bancshares' Dividend

Overall, we like to see the dividend staying consistent, and we think Commerce Bancshares might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for Commerce Bancshares for free  with public analyst estimates for the company. Is Commerce Bancshares not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

View Comments