LCNB's (NASDAQ:LCNB) Dividend Will Be $0.21
The board of LCNB Corp. (NASDAQ:LCNB) has announced that it will pay a dividend of $0.21 per share on the 15th of September. The dividend yield will be 5.3% based on this payment which is still above the industry average.
See our latest analysis for LCNB
LCNB's Dividend Forecasted To Be Well Covered By Earnings
A big dividend yield for a few years doesn't mean much if it can't be sustained.
LCNB has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 45%, which means that LCNB would be able to pay its last dividend without pressure on the balance sheet.
Over the next year, EPS is forecast to fall by 1.2%. But if the dividend continues along recent trends, we estimate the future payout ratio could be 47%, which we would consider to be quite comfortable looking forward, with most of the company's earnings left over to grow the business in the future.
LCNB Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2013, the dividend has gone from $0.64 total annually to $0.84. This means that it has been growing its distributions at 2.8% per annum over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.
LCNB Could Grow Its Dividend
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. LCNB has seen EPS rising for the last five years, at 9.5% per annum. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.
We Really Like LCNB's Dividend
Overall, we like to see the dividend staying consistent, and we think LCNB might even raise payments in the future. The earnings easily cover the company's distributions, and the company is generating plenty of cash. If earnings do fall over the next 12 months, the dividend could be buffeted a little bit, but we don't think it should cause too much of a problem in the long term. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in LCNB stock. 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.
