Yahoo Finance Northfield Bancorp (Staten Island NY) (NASDAQ:NFBK) Has Announced A Dividend Of $0.13
Northfield Bancorp, Inc. (Staten Island, NY)'s (NASDAQ:NFBK) investors are due to receive a payment of $0.13 per share on 22nd of May. Based on this payment, the dividend yield on the company's stock will be 6.2%, which is an attractive boost to shareholder returns.
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. Northfield Bancorp (Staten Island NY)'s stock price has reduced by 31% in the last 3 months, which is not ideal for investors and can explain a sharp increase 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.
Having distributed dividends for at least 10 years, Northfield Bancorp (Staten Island NY) has a long history of paying out a part of its earnings to shareholders. Based on Northfield Bancorp (Staten Island NY)'s last earnings report, the payout ratio is at a decent 69%, meaning that the company is able to pay out its dividend with a bit of room to spare.
Looking forward, earnings per share is forecast to rise by 17.0% over the next year. If the dividend continues on this path, the future payout ratio could be 67% by next year, which we think can be pretty sustainable going forward.
Northfield Bancorp (Staten Island NY) Has A Solid Track Record
The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.24 in 2014 to the most recent total annual payment of $0.52. This means that it has been growing its distributions at 8.0% per annum over that time. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.
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, initial appearances might be deceiving. It's not great to see that Northfield Bancorp (Staten Island NY)'s earnings per share has fallen at approximately 2.6% per year over the past five years. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. Earnings are predicted to grow over the next year, but we would remain cautious until a track record of earnings growth is established.
Our Thoughts On Northfield Bancorp (Staten Island NY)'s Dividend
In summary, we are pleased with the dividend remaining consistent, and we think there is a good chance of this continuing in the future. The earnings coverage is acceptable for now, but with earnings on the decline we would definitely keep an eye on the payout ratio. This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. 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.
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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.
