Yahoo Finance Riverview Bancorp (NASDAQ:RVSB) Is Due To Pay A Dividend Of $0.06
Riverview Bancorp, Inc.'s (NASDAQ:RVSB) investors are due to receive a payment of $0.06 per share on 16th of January. This payment means that the dividend yield will be 3.2%, which is around the industry average.
View our latest analysis for Riverview Bancorp
Riverview Bancorp's Dividend Forecasted To Be Well Covered By Earnings
Solid dividend yields are great, but they only really help us if the payment is sustainable.
Having paid out dividends for 8 years, Riverview Bancorp has a good history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Riverview Bancorp's payout ratio of 26% is a good sign for current shareholders as this means that earnings decently cover dividends.
EPS is set to fall by 2.3% over the next 12 months. But if the dividend continues along the path it has been on recently, we estimate the future payout ratio could be 32%, which would be comfortable for the company to continue in the future.
Riverview Bancorp Doesn't Have A Long Payment History
It is great to see that Riverview Bancorp has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2014, the annual payment back then was $0.045, compared to the most recent full-year payment of $0.24. This means that it has been growing its distributions at 23% per annum over that time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Riverview Bancorp has seen EPS rising for the last five years, at 16% per annum. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
Riverview Bancorp Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Riverview Bancorp might even raise payments in the future. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. All in all, this checks a lot of the boxes we look for when choosing an income stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've identified 2 warning signs for Riverview Bancorp (1 can't be ignored!) that you should be aware of before investing. 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.
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