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LCNB Corp. (NASDAQ:LCNB) Passed Our Checks, And It's About To Pay A US$0.19 Dividend

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Simply Wall St
·3 min read
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It looks like LCNB Corp. (NASDAQ:LCNB) is about to go ex-dividend in the next four days. If you purchase the stock on or after the 26th of February, you won't be eligible to receive this dividend, when it is paid on the 15th of March.

LCNB's next dividend payment will be US$0.19 per share, and in the last 12 months, the company paid a total of US$0.76 per share. Looking at the last 12 months of distributions, LCNB has a trailing yield of approximately 4.5% on its current stock price of $16.84. If you buy this business for its dividend, you should have an idea of whether LCNB's dividend is reliable and sustainable. As a result, readers should always check whether LCNB has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for LCNB

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. LCNB paid out a comfortable 47% of its profit last year.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Click here to see how much of its profit LCNB paid out over the last 12 months.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at LCNB, with earnings per share up 5.6% on average over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. LCNB has delivered 1.7% dividend growth per year on average over the past 10 years.

To Sum It Up

Has LCNB got what it takes to maintain its dividend payments? LCNB has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. We think this is a pretty attractive combination, and would be interested in investigating LCNB more closely.

While it's tempting to invest in LCNB for the dividends alone, you should always be mindful of the risks involved. To help with this, we've discovered 1 warning sign for LCNB that you should be aware of before investing in their shares.

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. 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.