Northfield Bancorp (Staten Island NY) (NASDAQ:NFBK) Will Pay A Dividend Of $0.13
The board of Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) has announced that it will pay a dividend on the 22nd of November, with investors receiving $0.13 per share. This makes the dividend yield 6.0%, which will augment investor returns quite nicely.
See our latest analysis for Northfield Bancorp (Staten Island NY)
Northfield Bancorp (Staten Island NY)'s Dividend Forecasted To Be Well Covered By Earnings
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained.
Northfield Bancorp (Staten Island NY) 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 53%, which means that Northfield Bancorp (Staten Island NY) would be able to pay its last dividend without pressure on the balance sheet.
Over the next 3 years, EPS is forecast to fall by 1.0%. Despite that, analysts estimate the future payout ratio could be 58% over the same time period, which is in a pretty comfortable range.
Northfield Bancorp (Staten Island NY) Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2013, the annual payment back then was $0.24, compared to the most recent full-year payment of $0.52. This works out to be a compound annual growth rate (CAGR) of approximately 8.0% a year over that time. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.
Northfield Bancorp (Staten Island NY) Could Grow Its Dividend
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that Northfield Bancorp (Staten Island NY) has been growing its earnings per share at 9.4% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.
We Really Like Northfield Bancorp (Staten Island NY)'s Dividend
Overall, we like to see the dividend staying consistent, and we think Northfield Bancorp (Staten Island NY) might even raise payments in the future. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. 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.
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. Taking the debate a bit further, we've identified 1 warning sign for Northfield Bancorp (Staten Island NY) that investors need to be conscious of moving forward. 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.
