Pathfinder Bancorp (NASDAQ:PBHC) Is Paying Out A Dividend Of $0.09
The board of Pathfinder Bancorp, Inc. (NASDAQ:PBHC) has announced that it will pay a dividend on the 10th of November, with investors receiving $0.09 per share. Including this payment, the dividend yield on the stock will be 2.5%, which is a modest boost for shareholders' returns.
See our latest analysis for Pathfinder Bancorp
Pathfinder Bancorp's Payment Expected To Have Solid Earnings Coverage
The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.
Having distributed dividends for at least 10 years, Pathfinder Bancorp has a long history of paying out a part of its earnings to shareholders. Based on Pathfinder Bancorp's last earnings report, the payout ratio is at a decent 25%, meaning that the company is able to pay out its dividend with a bit of room to spare.
If the trend of the last few years continues, EPS will grow by 9.3% over the next 12 months. Assuming the dividend continues along recent trends, we think the future payout ratio could be 26% by next year, which is in a pretty sustainable range.
Pathfinder Bancorp Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.0729 in 2013, and the most recent fiscal year payment was $0.36. This implies that the company grew its distributions at a yearly rate of about 17% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
The Dividend Has Growth Potential
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Pathfinder Bancorp has seen EPS rising for the last five years, at 9.3% per annum. Pathfinder Bancorp definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
We Really Like Pathfinder Bancorp's Dividend
Overall, we like to see the dividend staying consistent, and we think Pathfinder Bancorp might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 2 warning signs for Pathfinder Bancorp that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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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.
