It looks like Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) is about to go ex-dividend in the next four days. If you purchase the stock on or after the 4th of August, you won't be eligible to receive this dividend, when it is paid on the 19th of August.
Northfield Bancorp (Staten Island NY)'s upcoming dividend is US$0.11 a share, following on from the last 12 months, when the company distributed a total of US$0.44 per share to shareholders. Last year's total dividend payments show that Northfield Bancorp (Staten Island NY) has a trailing yield of 4.5% on the current share price of $9.88. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Northfield Bancorp (Staten Island NY) has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Northfield Bancorp (Staten Island NY) paid out more than half (53%) of its earnings last year, which is a regular payout ratio for most companies.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Fortunately for readers, Northfield Bancorp (Staten Island NY)'s earnings per share have been growing at 15% a year for the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Northfield Bancorp (Staten Island NY) has delivered 14% dividend growth per year on average over the past 10 years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.
Is Northfield Bancorp (Staten Island NY) an attractive dividend stock, or better left on the shelf? Earnings per share are growing nicely, and Northfield Bancorp (Staten Island NY) is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Overall, Northfield Bancorp (Staten Island NY) looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
On that note, you'll want to research what risks Northfield Bancorp (Staten Island NY) is facing. For example, we've found 2 warning signs for Northfield Bancorp (Staten Island NY) that we recommend you consider before investing in the business.
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. 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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