Hanover Bancorp (NASDAQ:HNVR) Is Paying Out A Dividend Of $0.10
Hanover Bancorp, Inc. (NASDAQ:HNVR) will pay a dividend of $0.10 on the 16th of August. This means the annual payment will be 2.2% of the current stock price, which is lower than the industry average.
Check out our latest analysis for Hanover Bancorp
Hanover Bancorp's Payment Expected To Have Solid Earnings Coverage
Even a low dividend yield can be attractive if it is sustained for years on end.
Given that this is the first year that Hanover Bancorp is paying out a dividend, we are not yet able to make an analysis based on the company's dividend paying history. While this gives us less confidence in Hanover Bancorp's long-term dividend potential, the company's payout ratio of 13%is a great sign for current shareholders, as this means that earnings greatly cover dividends.
Over the next year, EPS is forecast to expand by 20.4%. If the dividend continues on this path, the future payout ratio could be 14% by next year, which we think can be pretty sustainable going forward.
Hanover Bancorp Is Still Building Its Track Record
It's not possible for us to make a backward looking judgement just based on a short payment history. 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 Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Hanover Bancorp has grown earnings per share at 16% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Hanover Bancorp's prospects of growing its dividend payments in the future.
Hanover Bancorp Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Hanover Bancorp might even raise payments in the future. 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. As an example, we've identified 1 warning sign for Hanover Bancorp that you should be aware of before investing. 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.
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