Dime Community Bancshares' (NASDAQ:DCOM) Dividend Will Be $0.24
Dime Community Bancshares, Inc. (NASDAQ:DCOM) will pay a dividend of $0.24 on the 24th of January. This payment means that the dividend yield will be 3.0%, which is around the industry average.
View our latest analysis for Dime Community Bancshares
Dime Community Bancshares' Earnings Will Easily Cover The Distributions
While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.
Having distributed dividends for at least 10 years, Dime Community Bancshares has a long history of paying out a part of its earnings to shareholders. Based on Dime Community Bancshares' 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 expand by 30.2%. The future payout ratio could be 22% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
Dime Community Bancshares Has A Solid Track Record
The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.864 in 2012 to the most recent total annual payment of $0.96. This implies that the company grew its distributions at a yearly rate of about 1.1% over that duration. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Dime Community Bancshares has seen EPS rising for the last five years, at 19% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
Dime Community Bancshares 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. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 4 Dime Community Bancshares analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Dime Community Bancshares not quite the opportunity you were looking for? Why not check out our selection of top 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.
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