Citizens & Northern's (NASDAQ:CZNC) Dividend Will Be $0.28
The board of Citizens & Northern Corporation (NASDAQ:CZNC) has announced that it will pay a dividend on the 14th of February, with investors receiving $0.28 per share. The dividend yield will be 4.7% based on this payment which is still above the industry average.
See our latest analysis for Citizens & Northern
Citizens & Northern's Earnings Will Easily Cover The Distributions
A big dividend yield for a few years doesn't mean much if it can't be sustained.
Citizens & Northern has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Citizens & Northern's last earnings report, the payout ratio is at a decent 66%, meaning that the company is able to pay out its dividend with a bit of room to spare.
Looking forward, EPS is forecast to rise by 25.1% over the next 3 years. Analysts forecast the future payout ratio could be 56% over the same time horizon, which is a number we think the company can maintain.
Citizens & Northern Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2013, the annual payment back then was $0.80, compared to the most recent full-year payment of $1.12. This means that it has been growing its distributions at 3.4% per annum over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.
The Dividend Has Growth Potential
The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Citizens & Northern has been growing its earnings per share at 9.0% 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.
Citizens & Northern 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.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. See if management have their own wealth at stake, by checking insider shareholdings in Citizens & Northern stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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
