NBT Bancorp Inc (NASDAQ:NBTB): What You Have To Know Before Buying For The Upcoming Dividend
On the 14 September 2018, NBT Bancorp Inc (NASDAQ:NBTB) will be paying shareholders an upcoming dividend amount of US$0.25 per share. However, investors must have bought the company’s stock before 30 August 2018 in order to qualify for the payment. That means you have only 2 days left! Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at NBT Bancorp’s most recent financial data to examine its dividend characteristics in more detail.
Check out our latest analysis for NBT Bancorp
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is their annual yield among the top 25% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
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?
Does NBT Bancorp pass our checks?
The current trailing twelve-month payout ratio for the stock is 43.4%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 37.6%, leading to a dividend yield of 2.5%. However, EPS should increase to $2.58, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
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. NBTB has increased its DPS from $0.80 to $1 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes NBTB a true dividend rockstar.
Compared to its peers, NBT Bancorp produces a yield of 2.4%, which is on the low-side for Banks stocks.
Next Steps:
Keeping in mind the dividend characteristics above, NBT Bancorp is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for NBTB’s future growth? Take a look at our free research report of analyst consensus for NBTB’s outlook.
Valuation: What is NBTB worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether NBTB is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
