The First of Long Island Corporation (NASDAQ:FLIC) has pleased shareholders over the past 10 years, paying out an average dividend of 3.00% annually. The stock currently pays out a dividend yield of 2.20%, and has a market cap of US$683.00M. Does First of Long Island tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. See our latest analysis for First of Long Island
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?
- Can it afford to pay the current rate of dividends from its earnings?
- Will the company be able to keep paying dividend based on the future earnings growth?
Does First of Long Island pass our checks?
First of Long Island has a trailing twelve-month payout ratio of 40.14%, meaning the dividend is sufficiently covered by earnings. However, going forward, analysts expect FLIC’s payout to fall to 31.55% of its earnings, which leads to a dividend yield of 2.25%. However, EPS should increase to $1.76, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of FLIC it has increased its DPS from $0.27 to $0.6 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes FLIC a true dividend rockstar. Relative to peers, First of Long Island generates a yield of 2.20%, which is on the low-side for Banks stocks.
With this in mind, I definitely rank First of Long Island as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three key aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for FLIC’s future growth? Take a look at our free research report of analyst consensus for FLIC’s outlook.
- Valuation: What is FLIC 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 FLIC 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 pass 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.