CNB Financial (NASDAQ:CCNE) Has Affirmed Its Dividend Of $0.175
CNB Financial Corporation (NASDAQ:CCNE) has announced that it will pay a dividend of $0.175 per share on the 15th of December. Based on this payment, the dividend yield will be 3.3%, which is fairly typical for the industry.
Check out our latest analysis for CNB Financial
CNB Financial's Payment Expected To Have Solid Earnings Coverage
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.
Having distributed dividends for at least 10 years, CNB Financial has a long history of paying out a part of its earnings to shareholders. Based on CNB Financial's last earnings report, the payout ratio is at a decent 27%, 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 fall by 9.8%. Despite that, analysts estimate the future payout ratio could be 30% over the same time period, which is in a pretty comfortable range.
CNB Financial Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2013, the dividend has gone from $0.66 total annually to $0.70. Dividend payments have been growing, but very slowly over the period. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
The Dividend Has Growth Potential
Investors could be attracted to the stock based on the quality of its payment history. CNB Financial has seen EPS rising for the last five years, at 7.6% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
CNB Financial Looks Like A Great Dividend Stock
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. If earnings do fall over the next 12 months, the dividend could be buffeted a little bit, but we don't think it should cause too much of a problem in the long term. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for CNB Financial that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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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.
