Hanover Bancorp (NASDAQ:HNVR) Has Announced A Dividend Of $0.10
The board of Hanover Bancorp, Inc. (NASDAQ:HNVR) has announced that it will pay a dividend on the 15th of November, with investors receiving $0.10 per share. This payment means the dividend yield will be 2.2%, which is below the average for the industry.
Check out our latest analysis for Hanover Bancorp
Hanover Bancorp's Dividend Forecasted To Be Well Covered By Earnings
The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.
Looking at its history, Hanover Bancorp does not yet have a history of paying out dividends, with this year being its first year of distribution. Despite Hanover Bancorp only paying out for the first time, calculating for the company's payout ratio shows a percentage of 17%, a great sign for the sustainability of the company's dividend for the future.
If the trend of the last few years continues, EPS will grow by 8.7% over the next 12 months. If the dividend continues on this path, the future payout ratio could be 17% by next year, which we think can be pretty sustainable going forward.
Hanover Bancorp Doesn't Have A Long Payment History
Without a track record of dividend payments, we can't make a judgement on how stable it has been. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.
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 Hanover Bancorp has been growing its earnings per share at 8.7% a year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
We Really Like Hanover Bancorp's Dividend
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. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Hanover Bancorp that investors need to be conscious of moving forward. Is Hanover Bancorp 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.
