William Penn Bancorporation's (NASDAQ:WMPN) Dividend Will Be $0.03
William Penn Bancorporation's (NASDAQ:WMPN) investors are due to receive a payment of $0.03 per share on 9th of November. Including this payment, the dividend yield on the stock will be 1.0%, which is a modest boost for shareholders' returns.
See our latest analysis for William Penn Bancorporation
William Penn Bancorporation's Earnings Will Easily Cover The Distributions
While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.
Having distributed dividends for at least 10 years, William Penn Bancorporation has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but William Penn Bancorporation's payout ratio of 73% is a good sign as this means that earnings decently cover dividends.
If the trend of the last few years continues, EPS will grow by 6.9% over the next 12 months. Assuming the dividend continues along recent trends, we think the future payout ratio could be 54% by next year, which is in a pretty sustainable range.
William Penn Bancorporation 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 $0.0614 in 2013, and the most recent fiscal year payment was $0.12. This means that it has been growing its distributions at 6.9% per annum over that time. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.
We Could See William Penn Bancorporation's Dividend Growing
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. William Penn Bancorporation has seen EPS rising for the last five years, at 6.9% per annum. EPS has been growing at a reasonable rate, although with most of the profits being paid out to shareholders, growth prospects could be more limited in the future.
We Really Like William Penn Bancorporation's Dividend
Overall, we like to see the dividend staying consistent, and we think William Penn Bancorporation 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. All of these factors considered, we think this has solid potential as a dividend stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for William Penn Bancorporation 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.
