Yahoo Finance Riverview Bancorp (NASDAQ:RVSB) Has Announced A Dividend Of $0.06
The board of Riverview Bancorp, Inc. (NASDAQ:RVSB) has announced that it will pay a dividend on the 22nd of April, with investors receiving $0.06 per share. This makes the dividend yield 5.3%, which will augment investor returns quite nicely.
Check out our latest analysis for Riverview Bancorp
Riverview Bancorp's Earnings Will Easily Cover The Distributions
If the payments aren't sustainable, a high yield for a few years won't matter that much.
Riverview Bancorp has established itself as a dividend paying company, given its 9-year history of distributing earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Riverview Bancorp's payout ratio of 52% is a good sign for current shareholders as this means that earnings decently cover dividends.
Looking forward, earnings per share is forecast to fall by 34.9% over the next 3 years. Despite that, future payout ratio in that same time horizon is forecasted by analysts to be 76%, meaning that most of earnings is being paid out to shareholders.
Riverview Bancorp Doesn't Have A Long Payment History
Riverview Bancorp's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. Since 2015, the annual payment back then was $0.045, compared to the most recent full-year payment of $0.24. This implies that the company grew its distributions at a yearly rate of about 20% over that duration. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.
Dividend Growth Is Doubtful
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, initial appearances might be deceiving. Riverview Bancorp has seen earnings per share falling at 8.3% per year over the last five years. A modest decline in earnings isn't great, and it makes it quite unlikely that the dividend will grow in the future unless that trend can be reversed.
Our Thoughts On Riverview Bancorp's Dividend
Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The company hasn't been paying a very consistent dividend over time, despite only paying out a small portion of earnings. We would be a touch cautious of relying on this stock primarily for the dividend income.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Just as an example, we've come across 4 warning signs for Riverview Bancorp you should be aware of, and 1 of them can't be ignored. Is Riverview Bancorp not quite the opportunity you were looking for? Why not check out our selection of top 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.
