BankFinancial (NASDAQ:BFIN) Has Affirmed Its Dividend Of $0.10
BankFinancial Corporation's (NASDAQ:BFIN) investors are due to receive a payment of $0.10 per share on 26th of May. This makes the dividend yield 5.2%, which will augment investor returns quite nicely.
View our latest analysis for BankFinancial
BankFinancial's Earnings Will Easily Cover The Distributions
If the payments aren't sustainable, a high yield for a few years won't matter that much.
BankFinancial has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but BankFinancial's payout ratio of 44% is a good sign as this means that earnings decently cover dividends.
Over the next year, EPS is forecast to expand by 7.3%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 44% by next year, which is in a pretty sustainable range.
BankFinancial 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 $0.04 in 2013, and the most recent fiscal year payment was $0.40. This works out to be a compound annual growth rate (CAGR) of approximately 26% a year over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
We Could See BankFinancial's Dividend Growing
Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that BankFinancial has been growing its earnings per share at 9.6% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.
BankFinancial Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think BankFinancial might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Taking the debate a bit further, we've identified 1 warning sign for BankFinancial that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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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.
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