Yahoo Finance BancFirst (NASDAQ:BANF) Is Due To Pay A Dividend Of $0.43
BancFirst Corporation (NASDAQ:BANF) will pay a dividend of $0.43 on the 15th of July. Even though the dividend went up, the yield is still quite low at only 2.1%.
See our latest analysis for BancFirst
BancFirst's Dividend Forecasted To Be Well Covered By Earnings
Even a low dividend yield can be attractive if it is sustained for years on end.
BancFirst has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 27%, which means that BancFirst would be able to pay its last dividend without pressure on the balance sheet.
EPS is set to fall by 6.2% 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 33%, which would be comfortable for the company to continue in the future.
BancFirst Has A Solid Track Record
The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $0.58 in 2014, and the most recent fiscal year payment was $1.72. This means that it has been growing its distributions at 11% per annum over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.
BancFirst Could Grow Its Dividend
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. BancFirst has seen EPS rising for the last five years, at 9.7% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for BancFirst's prospects of growing its dividend payments in the future.
BancFirst Looks Like A Great Dividend Stock
Overall, a dividend increase is always good, and we think that BancFirst is a strong income stock thanks to its track record and growing earnings. The earnings easily cover the company's distributions, and the company is generating plenty of cash. 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. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 2 warning signs for BancFirst (of which 1 doesn't sit too well with us!) you should know about. Is BancFirst 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.
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