NorthEast Community Bancorp Inc's Dividend Analysis
Assessing the Sustainability and Growth of NorthEast Community Bancorp Inc's Dividends
NorthEast Community Bancorp Inc (NASDAQ:NECB) recently announced a dividend of $0.06 per share, payable on 2024-02-05, with the ex-dividend date set for 2024-01-02. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into NorthEast Community Bancorp Inc's dividend performance and assess its sustainability.
What Does NorthEast Community Bancorp Inc Do?
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NorthEast Community Bancorp Inc operates as a community-oriented financial institution. It is principally engaged in the business of attracting deposits and investing those funds into mortgage and commercial loans. They conduct their activities throughout the Northeastern United States including New York, Massachusetts, New Jersey, and Connecticut. The company offers a comprehensive line of banking products and services, including mobile banking as well as commercial real estate loans, commercial construction financing, lines of credit, and term loans. It also offers investment advisory and financial planning services.
A Glimpse at NorthEast Community Bancorp Inc's Dividend History
NorthEast Community Bancorp Inc has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down NorthEast Community Bancorp Inc's Dividend Yield and Growth
As of today, NorthEast Community Bancorp Inc currently has a 12-month trailing dividend yield of 1.35% and a 12-month forward dividend yield of 1.35%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, NorthEast Community Bancorp Inc's annual dividend growth rate was 44.20%. Extended to a five-year horizon, this rate decreased to 25.90% per year. And over the past decade, NorthEast Community Bancorp Inc's annual dividends per share growth rate stands at 6.40%.
Based on NorthEast Community Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of NorthEast Community Bancorp Inc stock as of today is approximately 4.27%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, NorthEast Community Bancorp Inc's dividend payout ratio is 0.10.
NorthEast Community Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks NorthEast Community Bancorp Inc's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. NorthEast Community Bancorp Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and NorthEast Community Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. NorthEast Community Bancorp Inc's revenue has increased by approximately 35.40% per year on average, a rate that outperforms approximately 96.65% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, NorthEast Community Bancorp Inc's earnings increased by approximately 99.80% per year on average, a rate that outperforms approximately 98.02% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 75.80%, which outperforms approximately 99.22% of global competitors.
Next Steps
In conclusion, NorthEast Community Bancorp Inc's dividend payments, growth rate, low payout ratio, and solid profitability and growth metrics paint a positive picture for investors seeking stable dividend income. The company's ability to sustain and grow its dividends is underpinned by a consistent track record, fair profitability, and robust growth outlook, which are crucial for long-term value creation. As NorthEast Community Bancorp Inc continues to navigate the financial landscape, value investors may find it to be an attractive option for their portfolios. Will NorthEast Community Bancorp Inc's dividends continue to be a beacon of reliability for income-focused investors? Only time will tell, but the current indicators are promising.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
