Yahoo Finance Northfield Bancorp (Staten Island NY)'s (NASDAQ:NFBK) Dividend Will Be $0.13
Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) will pay a dividend of $0.13 on the 21st of August. This means the annual payment is 4.1% of the current stock price, which is above the average for the industry.
While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that Northfield Bancorp (Staten Island NY)'s stock price has increased by 50% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.
View our latest analysis for Northfield Bancorp (Staten Island NY)
Northfield Bancorp (Staten Island NY)'s Earnings Will Easily Cover The Distributions
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained.
Northfield Bancorp (Staten Island NY) has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Northfield Bancorp (Staten Island NY)'s payout ratio of 77% is a good sign as this means that earnings decently cover dividends.
Over the next year, EPS is forecast to expand by 24.5%. Assuming the dividend continues along the course it has been charting recently, our estimates show the future payout ratio being 69% which brings it into quite a comfortable range.
Northfield Bancorp (Staten Island NY) Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the dividend has gone from $0.24 total annually to $0.52. This implies that the company grew its distributions at a yearly rate of about 8.0% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.
Northfield Bancorp (Staten Island NY) May Find It Hard To Grow The Dividend
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. Northfield Bancorp (Staten Island NY) has seen earnings per share falling at 3.1% per year over the last five years. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend.
In Summary
In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Northfield Bancorp (Staten Island NY)'s payments, as there could be some issues with sustaining them into the future. We can't deny that the payments have been very stable, but we are a little bit worried about the very high payout ratio. We would be a touch cautious of relying on this stock primarily for the dividend income.
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 example, we've picked out 1 warning sign for Northfield Bancorp (Staten Island NY) that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
