Yahoo Finance Greene County Bancorp (NASDAQ:GCBC) Has Announced A Dividend Of $0.08
The board of Greene County Bancorp, Inc. (NASDAQ:GCBC) has announced that it will pay a dividend of $0.08 per share on the 30th of May. The dividend yield is 1.1% based on this payment, which is a little bit low compared to the other companies in the industry.
Check out our latest analysis for Greene County Bancorp
Greene County Bancorp's Earnings Will Easily Cover The Distributions
While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.
Greene County Bancorp 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, Greene County Bancorp's payout ratio sits at 20%, an extremely comfortable number that shows that it can pay its dividend.
Looking forward, earnings per share could rise by 10.5% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the future payout ratio will be 19%, which is in the range that makes us comfortable with the sustainability of the dividend.
Greene County Bancorp Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the annual payment back then was $0.175, compared to the most recent full-year payment of $0.32. This implies that the company grew its distributions at a yearly rate of about 6.2% over that duration. 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
Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Greene County Bancorp has grown earnings per share at 10% per year over the past five years. Greene County Bancorp definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
Greene County 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. 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. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Are management backing themselves to deliver performance? Check their shareholdings in Greene County Bancorp in our latest insider ownership analysis. Is Greene County 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.
