Yahoo Finance Chemung Financial (NASDAQ:CHMG) Is Paying Out A Dividend Of $0.31
Chemung Financial Corporation's (NASDAQ:CHMG) investors are due to receive a payment of $0.31 per share on 3rd of April. Based on this payment, the dividend yield will be 2.4%, which is fairly typical for the industry.
View our latest analysis for Chemung Financial
Chemung Financial's Payment Expected To Have Solid Earnings Coverage
We aren't too impressed by dividend yields unless they can be sustained over time.
Chemung Financial has a long history of paying out dividends, with its current track record at a minimum of 10 years. Using data from its latest earnings report, Chemung Financial's payout ratio sits at 20%, an extremely comfortable number that shows that it can pay its dividend.
The next 3 years are set to see EPS grow by 0.6%. The future payout ratio could be 21% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
Chemung Financial Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of $1.00 in 2013 to the most recent total annual payment of $1.24. This means that it has been growing its distributions at 2.2% per annum over that time. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. Chemung Financial has impressed us by growing EPS at 32% 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 Chemung Financial's Dividend
Overall, we like to see the dividend staying consistent, and we think Chemung Financial 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.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Taking the debate a bit further, we've identified 1 warning sign for Chemung Financial that investors need to be conscious of moving forward. Is Chemung Financial 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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