Interested In Territorial Bancorp Inc (TBNK)’s Upcoming $0.2 Dividend? You Have 3 Days Left
Investors who want to cash in on Territorial Bancorp Inc’s (NASDAQ:TBNK) upcoming dividend of $0.2 per share have only 3 days left to buy the shares before its ex-dividend date, 07 November 2017, in time for dividends payable on the 22 November 2017. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine TBNK’s latest financial data to analyse its dividend characteristics. View our latest analysis for Territorial Bancorp
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is it paying an annual yield above 75% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has it increased its dividend per share amount over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
How well does Territorial Bancorp fit our criteria?
The company currently pays out 41.97% of its earnings as a dividend, which means that the dividend is covered by earnings. Looking forward, analysts expect TBNK to pay out 43.26% of its earnings leading to a dividend yield of 2.70%. Furthermore, EPS should increase to $1.91. This means the company should be able to continue to payout dividends. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Unfortunately, it is really too early to view Territorial Bancorp as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, TBNK generates a yield of 2.45%, which is on the low-side for a thrifts and mortgage finance stock.
What this means for you:
Are you a shareholder? Whilst there are few things you may like about Territorial Bancorp from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. It may be beneficial exploring other dividend stocks as alternatives to TBNK or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Taking all the above into account, Territorial Bancorp is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. However, if you are not strictly just a dividend investor, TBNK could still offer some interesting investment opportunities. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Check our latest free fundmental analysis to explore other aspects of TBNK.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
