CB Financial Services, Inc. (NASDAQ:CBFV) Passed Our Checks, And It's About To Pay A US$0.24 Dividend

By
Simply Wall St
Published
May 15, 2022
NasdaqGM:CBFV
Source: Shutterstock

CB Financial Services, Inc. (NASDAQ:CBFV) stock is about to trade ex-dividend in 3 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. In other words, investors can purchase CB Financial Services' shares before the 19th of May in order to be eligible for the dividend, which will be paid on the 31st of May.

The company's next dividend payment will be US$0.24 per share, and in the last 12 months, the company paid a total of US$0.96 per share. Last year's total dividend payments show that CB Financial Services has a trailing yield of 4.3% on the current share price of $22.44. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to investigate whether CB Financial Services can afford its dividend, and if the dividend could grow.

Check out our latest analysis for CB Financial Services

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. CB Financial Services paid out a comfortable 43% of its profit last year.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
NasdaqGM:CBFV Historic Dividend May 15th 2022

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at CB Financial Services, with earnings per share up 4.2% on average over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. CB Financial Services has delivered 1.7% dividend growth per year on average over the past eight years.

Final Takeaway

Is CB Financial Services an attractive dividend stock, or better left on the shelf? CB Financial Services has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. We think this is a pretty attractive combination, and would be interested in investigating CB Financial Services more closely.

On that note, you'll want to research what risks CB Financial Services is facing. For example - CB Financial Services has 2 warning signs we think you should be aware of.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

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