Does CB Financial Services Inc (NASDAQ:CBFV) Have A Place In Your Dividend Portfolio?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. In the past 4 years CB Financial Services Inc (NASDAQ:CBFV) has returned an average of 4.00% per year to investors in the form of dividend payouts. Should it have a place in your portfolio? Let's take a look at CB Financial Services in more detail. See our latest analysis for CB Financial Services

5 questions I ask before picking a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

• Does it pay an annual yield higher than 75% of dividend payers?
• Has it paid dividend every year without dramatically reducing payout in the past?
• Has dividend per share amount increased over the past?
• Can it afford to pay the current rate of dividends from its earnings?
• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

How well does CB Financial Services fit our criteria?

CB Financial Services has a payout ratio of 47.37%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 41.19%, leading to a dividend yield of 2.96%. Moreover, EPS is also forecasted to fall to $1.56 in the upcoming year. The lower EPS on top of a lower payout ratio will lead to a fall in dividend payment moving forward. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you're eyeing out is reliable in its payments. The reality is that it is too early to consider CB Financial Services as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, CB Financial Services produces a yield of 2.84%, which is on the low-side for banks stocks.

Next Steps:

Whilst there are few things you may like about CB Financial Services from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I've compiled three relevant factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for CBFV’s future growth? Take a look at our free research report of analyst consensus for CBFV’s outlook.

2. Valuation: What is CBFV worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether CBFV is currently mispriced by the market.

3. Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.