CNB Financial (NASDAQ:CCNE) Will Pay A Dividend Of $0.175

CNB Financial Corporation's (NASDAQ:CCNE) investors are due to receive a payment of $0.175 per share on 15th of December. Based on this payment, the dividend yield will be 3.3%, which is fairly typical for the industry.

See our latest analysis for CNB Financial

CNB Financial's Dividend Forecasted To Be Well Covered By Earnings

Solid dividend yields are great, but they only really help us if the payment is sustainable.

Having distributed dividends for at least 10 years, CNB Financial has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 27%, which means that CNB Financial would be able to pay its last dividend without pressure on the balance sheet.

EPS is set to fall by 9.8% over the next 3 years. Fortunately, analysts forecast the future payout ratio to be 30% over the same time horizon, 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. Since 2013, the annual payment back then was $0.66, compared to the most recent full-year payment of $0.70. Its dividends have grown at less than 1% per annum over this time frame. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

CNB Financial Could Grow Its Dividend

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that CNB Financial has been growing its earnings per share at 7.6% a year over the past five years. CNB Financial definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

CNB Financial Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign 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 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.