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Northfield Bancorp (Staten Island NY) (NASDAQ:NFBK) Has Announced A Dividend Of $0.13

The board of Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) has announced that it will pay a dividend of $0.13 per share on the 22nd of February. This means the annual payment will be 3.6% of the current stock price, which is lower than the industry average.

View our latest analysis for Northfield Bancorp (Staten Island NY)

Northfield Bancorp (Staten Island NY)'s Dividend Forecasted To Be Well Covered By Earnings

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

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 39%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Looking forward, EPS is forecast to rise by 1.7% over the next 3 years. Analysts forecast the future payout ratio could be 39% over the same time horizon, which is a number we think the company can maintain.

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historic-dividend

Northfield Bancorp (Staten Island NY) Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.24 in 2013, and the most recent fiscal year payment was $0.52. This means that it has been growing its distributions at 8.0% per annum over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Northfield Bancorp (Staten Island NY) has grown earnings per share at 19% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

We Really Like Northfield Bancorp (Staten Island NY)'s Dividend

Overall, we like to see the dividend staying consistent, and we think Northfield Bancorp (Staten Island NY) might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.

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. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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