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First Connecticut Bancorp Inc (FBNK): Ex-Dividend Is Coming In 3 Days, Should You Buy?

Attention dividend hunters! First Connecticut Bancorp Inc (NASDAQ:FBNK) will be distributing its dividend of $0.15 per share in 3 days time, on the 18 December 2017, and will start trading ex-dividend on the 07 December 2017. Is this future income a persuasive enough catalyst for investors to think about FBNK as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for First Connecticut Bancorp

5 checks you should do on a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

  • Is it paying an annual yield above 75% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has the amount of dividend per share grown over the past?

  • Is its earnings sufficient to payout dividend at the current rate?

  • Will it have the ability to keep paying its dividends going forward?

NasdaqGS:FBNK Historical Dividend Yield Dec 4th 17
NasdaqGS:FBNK Historical Dividend Yield Dec 4th 17

How well does First Connecticut Bancorp fit our criteria?

The company currently pays out 34.93% of its earnings as a dividend, which means that the dividend is covered by earnings. Going forward, analysts expect FBNK’s payout to remain around the same level at 35.98% of its earnings, which leads to a dividend yield of 2.10%. Moreover, EPS should increase to $1.53. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider First Connecticut Bancorp as a dividend investment. It has only been consistently paying dividends for 6 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Relative to peers, FBNK has a yield of 2.27%, which is on the low-side for banks stocks.

What this means for you:

Are you a shareholder? If FBNK is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be worth exploring other dividend stocks as alternatives to FBNK or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? Taking all the above into account, First Connecticut Bancorp is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. But if you are not exclusively a dividend investor, FBNK could still be an interesting investment opportunity. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Dig deeping in our latest free fundmental analysis to explore other aspects of FBNK.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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