Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) has recently declared that it will pay a dividend of $0.13 per share on the 21st of February. The dividend yield stands at 3.9%, contributing to favorable returns for investors. It is important to consider not only the dividend yield but also the movement of the stock price.
Investors will be pleased to know that Northfield Bancorp (Staten Island NY)’s stock price has increased by an impressive 54% in the past 3 months, which may explain the decrease in the dividend yield. However, it is crucial to examine the sustainability of the payment.
Northfield Bancorp (Staten Island NY) has a long-standing history of distributing dividends, having done so for at least 10 years. The company’s payout ratio, derived from its last earnings report, indicates the proportion of earnings allocated to dividends, currently at 60%. This suggests that the company is able to pay dividends without straining its balance sheet.
Looking ahead, analysts forecast a 31.2% rise in earnings per share (EPS) over the next 3 years. This could potentially result in a future payout ratio of 52%, a level that we believe the company can maintain.
Throughout the past decade, Northfield Bancorp (Staten Island NY) has consistently paid stable dividends. The annual payment has grown at a compound annual growth rate (CAGR) of approximately 8.0%. This highlights the value that such companies can offer over the long term, as long as growth rates remain steady.
However, it is important to note that Northfield Bancorp (Staten Island NY)’s earnings per share has remained essentially flat over the past five years. This suggests that future dividend increases may be limited.
In conclusion, while Northfield Bancorp (Staten Island NY) demonstrates a consistent dividend policy with reasonable earnings coverage, it is essential to monitor the payout ratio and earnings trends. While the company appears to be a promising dividend stock, further analysis and consideration of analysts’ forecasts are advisable.
FAQs:
1. What dividend will Northfield Bancorp pay?
– Northfield Bancorp (Staten Island, NY) will pay a dividend of $0.13 per share on the 21st of February.
2. What is the dividend yield?
– The dividend yield is currently 3.9%.
3. How much has the stock price of Northfield Bancorp increased in the past 3 months?
– The stock price has increased by an impressive 54% in the past 3 months.
4. Does Northfield Bancorp have a history of distributing dividends?
– Yes, Northfield Bancorp has a long-standing history of distributing dividends for at least 10 years.
5. What is the company’s payout ratio?
– According to the last earnings report, the company’s payout ratio is currently 60%.
6. Are analysts forecasting a rise in earnings per share (EPS) for Northfield Bancorp?
– Yes, analysts are forecasting a 31.2% rise in EPS over the next 3 years.
7. How much has the annual dividend payment of Northfield Bancorp grown at?
– The annual payment has grown at a compound annual growth rate (CAGR) of approximately 8.0% over the past decade.
8. Has Northfield Bancorp’s earnings per share remained stable?
– Yes, the earnings per share has remained essentially flat over the past five years.
9. What should be considered when investing in Northfield Bancorp as a dividend stock?
– It is essential to monitor the payout ratio and earnings trends before investing. Further analysis and consideration of analysts’ forecasts are advisable.
Definitions:
1. Dividend Yield: The dividend yield is a financial ratio that indicates the amount of cash a company returns to its shareholders in the form of dividends, relative to its share price. It is calculated by dividing the annual dividend per share by the share price and multiplying it by 100.
2. Payout Ratio: The payout ratio is a financial metric that measures the proportion of a company’s earnings allocated to paying dividends to its shareholders. It is calculated by dividing the dividend per share by the earnings per share and multiplying it by 100.
3. Compound Annual Growth Rate (CAGR): The compound annual growth rate is a measure of the annual growth of an investment or a company’s earnings over a specified period, considering the effect of compounding. It is calculated by taking the nth root of the total growth rate, where n is the number of years.
Suggested Related Links:
– Northfield Bancorp Official Website
– Northfield Bancorp Stock Information on NASDAQ