Yahoo Finance Greene County Bancorp's (NASDAQ:GCBC) Upcoming Dividend Will Be Larger Than Last Year's
Greene County Bancorp, Inc. (NASDAQ:GCBC) has announced that it will be increasing its dividend from last year's comparable payment on the 31st of August to $0.14. Even though the dividend went up, the yield is still quite low at only 1.2%.
View our latest analysis for Greene County Bancorp
Greene County Bancorp's Earnings Will Easily Cover The Distributions
If it is predictable over a long period, even low dividend yields can be attractive.
Having distributed dividends for at least 10 years, Greene County Bancorp has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Greene County Bancorp's latest earnings report puts its payout ratio at 16%, showing that the company can pay out its dividends comfortably.
Looking forward, earnings per share could rise by 20.1% over the next year if the trend from the last few years continues. If the dividend continues on this path, the future payout ratio could be 14% by next year, which we think can be pretty sustainable going forward.
Greene County Bancorp Has A Solid Track Record
The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $0.35 in 2012, and the most recent fiscal year payment was $0.56. This means that it has been growing its distributions at 4.8% per annum over that time. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Greene County Bancorp has impressed us by growing EPS at 20% per year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend.
We Really Like Greene County Bancorp's Dividend
Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.
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 1 warning sign for Greene County Bancorp that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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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.
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