Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) Passed Our Checks, And It's About To Pay A US$0.11 Dividend
Readers hoping to buy Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You will need to purchase shares before the 9th of February to receive the dividend, which will be paid on the 24th of February.
Northfield Bancorp (Staten Island NY)'s next dividend payment will be US$0.11 per share, and in the last 12 months, the company paid a total of US$0.44 per share. Calculating the last year's worth of payments shows that Northfield Bancorp (Staten Island NY) has a trailing yield of 3.4% on the current share price of $12.91. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.
Check out our latest analysis for Northfield Bancorp (Staten Island NY)
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Northfield Bancorp (Staten Island NY) paid out more than half (58%) of its earnings last year, which is a regular payout ratio for most companies.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see Northfield Bancorp (Staten Island NY)'s earnings per share have risen 10% per annum over the last five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Northfield Bancorp (Staten Island NY) has lifted its dividend by approximately 12% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.
To Sum It Up
Has Northfield Bancorp (Staten Island NY) got what it takes to maintain its dividend payments? Earnings per share are growing nicely, and Northfield Bancorp (Staten Island NY) is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Overall, Northfield Bancorp (Staten Island NY) looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
In light of that, while Northfield Bancorp (Staten Island NY) has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 2 warning signs for Northfield Bancorp (Staten Island NY) that we recommend you consider before investing in the business.
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.
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