S&T Bancorp (STBA) Could Be a Great Choice

Company Overview - S&T Bancorp (STBA) is based in Indiana and operates in the Finance sector, with a year-to-date share price change of 12.15% [3] - The company currently pays a dividend of $0.36 per share, resulting in a dividend yield of 3.26%, which is higher than the Banks - Northeast industry's yield of 2.41% and the S&P 500's yield of 1.34% [3] Dividend Performance - The current annualized dividend of S&T Bancorp is $1.44, reflecting a 4.3% increase from the previous year [4] - Over the past five years, S&T Bancorp has increased its dividend four times year-over-year, achieving an average annual increase of 5.08% [4] - The company's current payout ratio is 41%, indicating that it pays out 41% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, S&T Bancorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $3.66 per share, representing a year-over-year growth rate of 4.87% [5] Investment Considerations - S&T Bancorp is viewed as a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 2 (Buy) [6] - The company is positioned well compared to high-growth firms or tech start-ups, which typically do not provide dividends, making it an appealing option for income investors [6]