Yahoo Finance HarborOne Bancorp (NASDAQ:HONE) Is Paying Out A Dividend Of $0.075
HarborOne Bancorp, Inc. (NASDAQ:HONE) has announced that it will pay a dividend of $0.075 per share on the 26th of April. This payment means the dividend yield will be 2.3%, which is below the average for the industry.
See our latest analysis for HarborOne Bancorp
HarborOne Bancorp's Payment Expected To Have Solid Earnings Coverage
While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.
Having paid out dividends for only 3 years, HarborOne Bancorp does not have much of a history being a dividend paying company. Based on HarborOne Bancorp's last earnings report, calculating for its payout ratio equates to 29%, which means that the company covered its last dividend with comfortable room to spare.
Over the next 3 years, EPS is forecast to expand by 6.3%. Analysts estimate the future payout ratio will be 29% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
HarborOne Bancorp Is Still Building Its Track Record
The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. The annual payment during the last 3 years was $0.12 in 2020, and the most recent fiscal year payment was $0.28. This works out to be a compound annual growth rate (CAGR) of approximately 33% a year over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. HarborOne Bancorp has impressed us by growing EPS at 40% 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.
HarborOne Bancorp Looks Like A Great Dividend Stock
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 2 warning signs for HarborOne Bancorp (of which 1 doesn't sit too well with us!) you should know about. Is HarborOne 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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