Why You Might Be Interested In Citizens Holding Company (NASDAQ:CIZN) For Its Upcoming Dividend
It looks like Citizens Holding Company (NASDAQ:CIZN) is about to go ex-dividend in the next 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase Citizens Holding's shares before the 15th of June in order to receive the dividend, which the company will pay on the 30th of June.
The company's next dividend payment will be US$0.16 per share, and in the last 12 months, the company paid a total of US$0.96 per share. Based on the last year's worth of payments, Citizens Holding stock has a trailing yield of around 8.0% on the current share price of $12.0003. If you buy this business for its dividend, you should have an idea of whether Citizens Holding's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
View our latest analysis for Citizens Holding
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Citizens Holding is paying out an acceptable 62% of its profit, a common payout level among most companies.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Click here to see how much of its profit Citizens Holding paid out over the last 12 months.
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 decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Citizens Holding's earnings per share have been growing at 15% a year for the past five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Citizens Holding has lifted its dividend by approximately 0.9% a year on average. Earnings per share have been growing much quicker than dividends, potentially because Citizens Holding is keeping back more of its profits to grow the business.
The Bottom Line
Has Citizens Holding got what it takes to maintain its dividend payments? Citizens Holding has an acceptable payout ratio and its earnings per share have been improving at a decent rate. Overall, Citizens Holding looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Every company has risks, and we've spotted 1 warning sign for Citizens Holding you should know about.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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