CCFNB Bancorp Inc's Dividend Analysis
An Insightful Examination of CCFNB Bancorp Inc's Dividend Performance and Sustainability
CCFNB Bancorp Inc (CCFN) recently announced a dividend of $0.43 per share, payable on 2023-11-02, with the ex-dividend date set for 2023-10-16. 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 delve into CCFNB Bancorp Inc's dividend performance and assess its sustainability.
What Does CCFNB Bancorp Inc Do?
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CCFNB Bancorp Inc operates as a bank. The bank offers commercial and retail financial services, including savings and demand deposits, commercial, consumer and mortgage loans, and provides other financial services.
A Glimpse at CCFNB Bancorp Inc's Dividend History
CCFNB Bancorp Inc has maintained a consistent dividend payment record since 1998. Dividends are currently distributed on a quarterly basis. CCFNB Bancorp Inc has increased its dividend each year since 1999. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 24 years.
Breaking Down CCFNB Bancorp Inc's Dividend Yield and Growth
As of today, CCFNB Bancorp Inc currently has a 12-month trailing dividend yield of 5.00% and a 12-month forward dividend yield of 5.06%. This suggests an expectation of increased dividend payments over the next 12 months.
CCFNB Bancorp Inc's dividend yield of 5.00% is near a 10-year high and outperforms than 62.97% of global competitors in the Banks industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, CCFNB Bancorp Inc's annual dividend growth rate was 2.30%. Extended to a five-year horizon, this rate stayed the same. And over the past decade, CCFNB Bancorp Inc's annual dividends per share growth rate stands at 4.60%.
Based on CCFNB Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of CCFNB Bancorp Inc stock as of today is approximately 5.60%.
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, CCFNB Bancorp Inc's dividend payout ratio is 0.00.
CCFNB Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CCFNB Bancorp Inc's profitability 5 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. CCFNB Bancorp Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and CCFNB Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CCFNB Bancorp Inc's revenue has increased by approximately 3.40% per year on average, a rate that underperforms than approximately 67.79% 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, CCFNB Bancorp Inc's earnings increased by approximately 5.60% per year on average, a rate that underperforms than approximately 59.18% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 3.60%, which underperforms than approximately 66.96% of global competitors.
Next Steps
In conclusion, CCFNB Bancorp Inc presents a promising dividend profile. Its consistent dividend payment history, attractive yield, and growth rates make it an appealing option for income investors. However, the company's payout ratio and growth metrics highlight the need for careful consideration. Despite some underperformance in comparison to global competitors, CCFNB Bancorp Inc's profitability and growth prospects indicate a sustainable dividend in the foreseeable future. Therefore, it is crucial for investors to continue monitoring these metrics for informed investment decisions.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
