Brookline Bancorp (NASDAQ:BRKL) Is Paying Out A Larger Dividend Than Last Year

The board of Brookline Bancorp, Inc. (NASDAQ:BRKL) has announced that it will be paying its dividend of $0.135 on the 25th of November, an increased payment from last year's comparable dividend. This makes the dividend yield 4.0%, which is above the industry average.

Check out our latest analysis for Brookline Bancorp

Brookline Bancorp's Dividend Forecasted To Be Well Covered By Earnings

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable.

Brookline Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Brookline Bancorp's payout ratio of 37% is a good sign as this means that earnings decently cover dividends.

Over the next 3 years, EPS is forecast to expand by 30.1%. The future payout ratio could be 33% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Brookline Bancorp Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $0.34 in 2012, and the most recent fiscal year payment was $0.54. This implies that the company grew its distributions at a yearly rate of about 4.7% over that duration. 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. Brookline Bancorp has impressed us by growing EPS at 13% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Brookline Bancorp's prospects of growing its dividend payments in the future.

Brookline Bancorp Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 4 Brookline Bancorp analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.