Yahoo Finance Penns Woods Bancorp (NASDAQ:PWOD) Is Paying Out A Dividend Of $0.32
The board of Penns Woods Bancorp, Inc. (NASDAQ:PWOD) has announced that it will pay a dividend on the 20th of December, with investors receiving $0.32 per share. The dividend yield will be 5.0% based on this payment which is still above the industry average.
See our latest analysis for Penns Woods Bancorp
Penns Woods 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.
Having distributed dividends for at least 10 years, Penns Woods Bancorp has a long history of paying out a part of its earnings to shareholders. Based on Penns Woods Bancorp's last earnings report, the payout ratio is at a decent 51%, meaning that the company is able to pay out its dividend with a bit of room to spare.
If the trend of the last few years continues, EPS will grow by 8.2% over the next 12 months. If the dividend continues on this path, the future payout ratio could be 47% by next year, which we think can be pretty sustainable going forward.
Penns Woods Bancorp Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2012, the annual payment back then was $1.25, compared to the most recent full-year payment of $1.28. Dividend payments have grown at less than 1% a year over this period. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.
The Dividend Has Growth Potential
Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Penns Woods Bancorp has been growing its earnings per share at 8.2% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.
We Really Like Penns Woods Bancorp's Dividend
Overall, we like to see the dividend staying consistent, and we think Penns Woods Bancorp might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.
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. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Penns Woods Bancorp stock. Is Penns Woods 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.
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