Yahoo Finance Ohio Valley Banc's (NASDAQ:OVBC) Dividend Will Be $0.21
Ohio Valley Banc Corp. (NASDAQ:OVBC) has announced that it will pay a dividend of $0.21 per share on the 10th of February. This payment means that the dividend yield will be 3.2%, which is around the industry average.
View our latest analysis for Ohio Valley Banc
Ohio Valley Banc's Earnings Will Easily Cover The Distributions
Unless the payments are sustainable, the dividend yield doesn't mean too much.
Having distributed dividends for at least 10 years, Ohio Valley Banc has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Ohio Valley Banc's payout ratio of 33% is a good sign as this means that earnings decently cover dividends.
If the trend of the last few years continues, EPS will grow by 6.6% over the next 12 months. Assuming the dividend continues along recent trends, we think the future payout ratio could be 37% by next year, which is in a pretty sustainable range.
Ohio Valley Banc Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The payments haven't really changed that much since 10 years ago. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.
Ohio Valley Banc Could Grow Its Dividend
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that Ohio Valley Banc has been growing its earnings per share at 6.6% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Ohio Valley Banc's prospects of growing its dividend payments in the future.
Ohio Valley Banc Looks Like A Great Dividend Stock
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. See if management have their own wealth at stake, by checking insider shareholdings in Ohio Valley Banc stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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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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