MVB Financial (NASDAQ:MVBF) Has Announced A Dividend Of $0.17
MVB Financial Corp.'s (NASDAQ:MVBF) investors are due to receive a payment of $0.17 per share on 15th of March. Based on this payment, the dividend yield will be 3.2%, which is fairly typical for the industry.
View our latest analysis for MVB Financial
MVB Financial'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.
Having distributed dividends for at least 10 years, MVB Financial has a long history of paying out a part of its earnings to shareholders. Based on MVB Financial's last earnings report, the payout ratio is at a decent 38%, meaning that the company is able to pay out its dividend with a bit of room to spare.
Over the next 3 years, EPS is forecast to expand by 51.6%. Analysts forecast the future payout ratio could be 29% over the same time horizon, which is a number we think the company can maintain.
MVB Financial Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the annual payment back then was $0.07, compared to the most recent full-year payment of $0.68. This means that it has been growing its distributions at 26% 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
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that MVB Financial has been growing its earnings per share at 11% a year over the past five years. MVB Financial definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
We Really Like MVB Financial's Dividend
Overall, we like to see the dividend staying consistent, and we think MVB Financial might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 4 analysts we track are forecasting for MVB Financial for free with public analyst estimates for the company. Is MVB Financial 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.
