Analyzing NASB Financial Inc's Upcoming Dividend Payment
A Deep Dive into the Dividend Performance and Sustainability of NASB Financial Inc
NASB Financial Inc (NASB) recently announced a dividend of $0.25 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-15. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into NASB Financial Inc's dividend performance and assess its sustainability.
What Does NASB Financial Inc Do?
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NASB Financial Inc is a federally chartered stock savings bank, whose business is to attract deposits from the general public and to originate real estate loans, other loans, and short-term investments. It has a portfolio of mortgage loans that are secured by multifamily, construction, development, and commercial real estate properties. Its sources of income include interest on loans, interest on MBS, interest on investment securities, customer service fees, and mortgage banking fees.
A Glimpse at NASB Financial Inc's Dividend History
NASB Financial Inc has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down NASB Financial Inc's Dividend Yield and Growth
As of today, NASB Financial Inc currently has a 12-month trailing dividend yield of 7.37% and a 12-month forward dividend yield of 3.35%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, NASB Financial Inc's annual dividend growth rate was 18.20%. Extended to a five-year horizon, this rate increased to 19.90% per year.
Based on NASB Financial Inc's dividend yield and five-year growth rate, the 5-year yield on cost of NASB Financial Inc stock as of today is approximately 18.26%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, NASB Financial Inc's dividend payout ratio is 0.56.
NASB Financial Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks NASB Financial Inc's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. NASB Financial Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and NASB Financial Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. NASB Financial Inc's revenue has increased by approximately 2.50% per year on average, a rate that underperforms than approximately 73.5% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, NASB Financial Inc's earnings increased by approximately -9.50% per year on average, a rate that underperforms than approximately 90.52% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 12.30%, which underperforms than approximately 36.99% of global competitors.
Conclusion
Given NASB Financial Inc's consistent dividend payments, impressive dividend growth rate, and a fair payout ratio, it is evident that the company has a solid dividend strategy. Despite some challenges in growth metrics, the company's profitability and revenue model suggest a promising future. However, investors should keep an eye on the company's EPS and EBITDA growth rates as these could impact future dividend payments. As always, it is crucial to conduct thorough research and consider various factors before making investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
