Only 2 Days Left Before CNB Financial Corporation (NASDAQ:CCNE) Will Start Trading Ex-Dividend, Is It Worth Buying?
Attention dividend hunters! CNB Financial Corporation (NASDAQ:CCNE) will be distributing its dividend of US$0.17 per share on the 14 September 2018, and will start trading ex-dividend in 2 days time on the 30 August 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding CNB Financial can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
Check out our latest analysis for CNB Financial
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
Is its annual yield among the top 25% of dividend-paying companies?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does CNB Financial pass our checks?
CNB Financial has a trailing twelve-month payout ratio of 38.5%, which means that the dividend is covered by earnings. However, going forward, analysts expect CCNE’s payout to fall to 25.8% of its earnings, which leads to a dividend yield of around 2.1%. However, EPS should increase to $2.34, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. CCNE has increased its DPS from $0.64 to $0.68 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. These are all positive signs of a great, reliable dividend stock.
Relative to peers, CNB Financial has a yield of 2.1%, which is on the low-side for Banks stocks.
Next Steps:
Keeping in mind the dividend characteristics above, CNB Financial 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. There are three key factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for CCNE’s future growth? Take a look at our free research report of analyst consensus for CCNE’s outlook.
Valuation: What is CCNE 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 CCNE 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.
