CNB Financial (NASDAQ:CCNE) Has Re-Affirmed Its Dividend Of US$0.17

CNB Financial Corporation's (NASDAQ:CCNE) investors are due to receive a payment of US$0.17 per share on 15th of June. This makes the dividend yield 2.7%, which will augment investor returns quite nicely.

View our latest analysis for CNB Financial

CNB Financial's Earnings Easily Cover the Distributions

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Before making this announcement, CNB Financial was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 30.5%. If the dividend continues along recent trends, we estimate the payout ratio will be 24%, which is in the range that makes us comfortable with the sustainability of the dividend.

CNB Financial Has A Solid Track Record

The company has an extended history of paying stable dividends. The first annual payment during the last 10 years was US$0.66 in 2011, and the most recent fiscal year payment was US$0.68. Dividend payments have grown at less than 1% a year over this period. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

The Dividend Has Growth Potential

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that CNB Financial has grown earnings per share at 7.8% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for CNB Financial's prospects of growing its dividend payments in the future.

CNB Financial Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think CNB Financial 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 of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 2 warning signs for CNB Financial that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high performing dividend stock.

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