U.S. markets closed
  • S&P Futures

    4,222.75
    +12.75 (+0.30%)
     
  • Dow Futures

    33,354.00
    +94.00 (+0.28%)
     
  • Nasdaq Futures

    13,450.50
    +58.50 (+0.44%)
     
  • Russell 2000 Futures

    1,974.70
    +5.20 (+0.26%)
     
  • Crude Oil

    91.51
    -0.42 (-0.46%)
     
  • Gold

    1,805.70
    -8.00 (-0.44%)
     
  • Silver

    20.55
    -0.20 (-0.95%)
     
  • EUR/USD

    1.0293
    -0.0008 (-0.08%)
     
  • 10-Yr Bond

    2.7860
    -0.0110 (-0.39%)
     
  • Vix

    19.74
    -2.03 (-9.32%)
     
  • GBP/USD

    1.2201
    -0.0017 (-0.14%)
     
  • USD/JPY

    133.0910
    +0.2180 (+0.16%)
     
  • BTC-USD

    24,144.89
    +1,256.36 (+5.49%)
     
  • CMC Crypto 200

    570.43
    +39.21 (+7.38%)
     
  • FTSE 100

    7,507.11
    +18.96 (+0.25%)
     
  • Nikkei 225

    27,819.33
    -180.63 (-0.65%)
     

Here's What We Like About Lakeland Bancorp's (NASDAQ:LBAI) Upcoming Dividend

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

It looks like Lakeland Bancorp, Inc. (NASDAQ:LBAI) is about to go ex-dividend in the next 4 days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Meaning, you will need to purchase Lakeland Bancorp's shares before the 4th of November to receive the dividend, which will be paid on the 15th of November.

The company's next dividend payment will be US$0.14 per share. Last year, in total, the company distributed US$0.54 to shareholders. Based on the last year's worth of payments, Lakeland Bancorp stock has a trailing yield of around 3.0% on the current share price of $17.98. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Lakeland Bancorp has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Lakeland Bancorp

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Lakeland Bancorp paid out a comfortable 29% of its profit last year.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Fortunately for readers, Lakeland Bancorp's earnings per share have been growing at 16% a year for the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Lakeland Bancorp has delivered an average of 9.5% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

To Sum It Up

Is Lakeland Bancorp worth buying for its dividend? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Overall, Lakeland Bancorp looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

Wondering what the future holds for Lakeland Bancorp? See what the five analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.