Yahoo Finance CF Bankshares (NASDAQ:CFBK) Is Due To Pay A Dividend Of $0.06
CF Bankshares Inc. (NASDAQ:CFBK) has announced that it will pay a dividend of $0.06 per share on the 29th of April. Including this payment, the dividend yield on the stock will be 1.3%, which is a modest boost for shareholders' returns.
View our latest analysis for CF Bankshares
CF Bankshares' Earnings Will Easily Cover The Distributions
Even a low dividend yield can be attractive if it is sustained for years on end.
CF Bankshares is just starting to establish itself as being able to pay dividends to shareholders, given its short 3-year history of distributing earnings. Based on its last earnings report however, the payout ratio is at a comfortable 8.7%, meaning that CF Bankshares may be able to sustain this dividend for future years if it continues on this earnings trend.
If the trend of the last few years continues, EPS will grow by 21.3% over the next 12 months. If the dividend continues on this path, the future payout ratio could be 7.4% by next year, which we think can be pretty sustainable going forward.
CF Bankshares Doesn't Have A Long Payment History
The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 3 years, which isn't that long in the grand scheme of things. Since 2021, the dividend has gone from $0.12 total annually to $0.24. This means that it has been growing its distributions at 26% 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
Investors could be attracted to the stock based on the quality of its payment history. CF Bankshares has impressed us by growing EPS at 21% per year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.
We Really Like CF Bankshares' Dividend
Overall, we like to see the dividend staying consistent, and we think CF Bankshares might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. See if management have their own wealth at stake, by checking insider shareholdings in CF Bankshares 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.
