Home Federal Bancorp of Louisiana's (NASDAQ:HFBL) Dividend Will Be Increased To $0.12
The board of Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) has announced that it will be increasing its dividend by 20% on the 15th of August to $0.12, up from last year's comparable payment of $0.10. Even though the dividend went up, the yield is still quite low at only 2.1%.
View our latest analysis for Home Federal Bancorp of Louisiana
Home Federal Bancorp of Louisiana's Payment Expected To Have Solid Earnings Coverage
If it is predictable over a long period, even low dividend yields can be attractive.
Having distributed dividends for at least 10 years, Home Federal Bancorp of Louisiana has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Home Federal Bancorp of Louisiana's latest earnings report puts its payout ratio at 24%, showing that the company can pay out its dividends comfortably.
Over the next year, EPS could expand by 11.4% if recent trends continue. If the dividend continues on this path, the future payout ratio could be 26% by next year, which we think can be pretty sustainable going forward.
Home Federal Bancorp of Louisiana Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.12 in 2012, and the most recent fiscal year payment was $0.40. This means that it has been growing its distributions at 13% 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 impressed us by growing EPS at 11% per year over the past five years. Home Federal Bancorp of Louisiana definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
We Really Like Home Federal Bancorp of Louisiana's Dividend
Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. 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. Is Home Federal Bancorp of Louisiana 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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