Have you been waiting for BankFinancial Corporation’s (NASDAQ:BFIN) upcoming dividend of $0.08 per share? Then you only have to wait 3 more days before the stock pays out on 24 November 2017, and starts trading ex-dividend on the 07 November 2017. What does this mean for current shareholders and potential investors? Below, I will explain how holding BFIN can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for BFIN
5 checks you should use to assess a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Is it the top 25% annual dividend yield payer?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has dividend per share risen in the past couple of years?
- Can it afford to pay the current rate of dividends from its earnings?
- Will the company be able to keep paying dividend based on the future earnings growth?
Does BankFinancial pass our checks?
The company currently pays out 46.65% of its earnings as a dividend, which means that the dividend is covered by earnings. Analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect to see moving forward. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Relative to peers, BFIN has a yield of 1.99%, which is on the low-side for a thrifts and mortgage finance stock.
What this means for you:
Are you a shareholder? You may be wondering why BankFinancial is paying out dividends at all, instead of re-investing into the business to generate higher cash flows in the future. It may be valuable exploring other dividend stocks as alternatives to BFIN or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Now you know to keep in mind the reason why investors should be careful investing in BFIN for the dividend. On the other hand, if you are not strictly just a dividend investor, BFIN could still be offering some interesting investment opportunities. As with all investments, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Take a look at our latest free fundmental analysis to explore other aspects of BFIN.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.