Bank First's (NASDAQ:BFC) Dividend Will Be $0.45

Bank First Corporation's (NASDAQ:BFC) investors are due to receive a payment of $0.45 per share on 7th of January. The dividend yield is 1.4% based on this payment, which is a little bit low compared to the other companies in the industry.

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Bank First's Dividend Forecasted To Be Well Covered By Earnings

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.

Bank First has a long history of paying out dividends, with its current track record at a minimum of 10 years. Based on Bank First's last earnings report, the payout ratio is at a decent 25%, meaning that the company is able to pay out its dividend with a bit of room to spare.

The next 3 years are set to see EPS grow by 67.4%. Analysts forecast the future payout ratio could be 20% over the same time horizon, which is a number we think the company can maintain.

Check out our latest analysis for Bank First

Bank First Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was $0.48 in 2015, and the most recent fiscal year payment was $1.80. This works out to be a compound annual growth rate (CAGR) of approximately 14% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

Bank First Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Bank First has seen EPS rising for the last five years, at 9.1% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Bank First Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Bank First 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. All in all, this checks a lot of the boxes we look for when choosing an income stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Now, if you want to look closer, it would be worth checking out our free research on Bank First management tenure, salary, and performance. If you are a dividend investor, you might also want to look at our curated list of high yield 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.