CB Financial Services (NASDAQ:CBFV) Has Announced A Dividend Of $0.24
The board of CB Financial Services, Inc. (NASDAQ:CBFV) has announced that it will pay a dividend of $0.24 per share on the 30th of November. This means the annual payment is 4.5% of the current stock price, which is above the average for the industry.
See our latest analysis for CB Financial Services
CB Financial Services' Dividend Forecasted To Be Well Covered By Earnings
A big dividend yield for a few years doesn't mean much if it can't be sustained.
CB Financial Services has a good history of paying out dividends, with its current track record at 8 years. Based on CB Financial Services' last earnings report, the payout ratio is at a decent 35%, meaning that the company is able to pay out its dividend with a bit of room to spare.
Over the next 3 years, EPS is forecast to expand by 12.6%. Analysts estimate the future payout ratio will be 37% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
CB Financial Services Doesn't Have A Long Payment History
It is great to see that CB Financial Services has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2014, the dividend has gone from $0.84 total annually to $0.96. This implies that the company grew its distributions at a yearly rate of about 1.7% over that duration. CB Financial Services hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.
The Dividend Has Growth Potential
Investors could be attracted to the stock based on the quality of its payment history. CB Financial Services has seen EPS rising for the last five years, at 8.2% per annum. CB Financial Services definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
CB Financial Services Looks Like A Great Dividend Stock
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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 of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. 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 CB Financial Services that investors need to be conscious of moving forward. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
