Home Federal Bancorp of Louisiana (NASDAQ:HFBL) Is Paying Out A Dividend Of $0.125
Home Federal Bancorp, Inc. of Louisiana's (NASDAQ:HFBL) investors are due to receive a payment of $0.125 per share on 12th of February. This means that the annual payment will be 3.5% of the current stock price, which is in line with the average for the industry.
Check out our latest analysis for Home Federal Bancorp of Louisiana
Home Federal Bancorp of Louisiana's 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.
Home Federal Bancorp of Louisiana has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Home Federal Bancorp of Louisiana's payout ratio of 28% is a good sign as this means that earnings decently cover dividends.
Over the next year, EPS could expand by 10.5% if recent trends continue. If the dividend continues along recent trends, we estimate the future payout ratio will be 29%, which is in the range that makes us comfortable with the sustainability of the dividend.
Home Federal Bancorp of Louisiana Has A Solid Track Record
The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $0.12 in 2014, and the most recent fiscal year payment was $0.50. This means that it has been growing its distributions at 15% per annum over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Home Federal Bancorp of Louisiana has seen EPS rising for the last five years, at 10% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
Home Federal Bancorp of Louisiana Looks Like A Great Dividend Stock
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. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Home Federal Bancorp of Louisiana that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
