Yahoo Finance Only 4 Days Left Before Brookline Bancorp Inc (NASDAQ:BRKL) Will Be Trading Ex-Dividend,
Attention dividend hunters! Brookline Bancorp Inc (NASDAQ:BRKL) will be distributing its dividend of US$0.10 per share on the 23 November 2018, and will start trading ex-dividend in 4 days time on the 08 November 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Brookline Bancorp can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
Check out our latest analysis for Brookline Bancorp
5 questions to ask before buying a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Can it afford to pay the current rate of dividends from its earnings?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Brookline Bancorp fit our criteria?
The current trailing twelve-month payout ratio for the stock is 45%, which means that the dividend is covered by earnings. However, going forward, analysts expect BRKL’s payout to fall to 39% of its earnings, which leads to a dividend yield of 2.7%. However, EPS should increase to $1.09, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Not only have dividend payouts from Brookline Bancorp fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. These characteristics do not bode well for income investors seeking reliable stream of dividends.
Compared to its peers, Brookline Bancorp generates a yield of 2.7%, which is on the low-side for Banks stocks.
Next Steps:
If Brookline Bancorp is in your portfolio for cash-generating reasons, there may be better alternatives out there. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for BRKL’s future growth? Take a look at our free research report of analyst consensus for BRKL’s outlook.
Valuation: What is BRKL worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether BRKL is currently mispriced by the market.
Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
