Chemung Financial (NASDAQ:CHMG) Has Affirmed Its Dividend Of $0.31

Chemung Financial Corporation (NASDAQ:CHMG) will pay a dividend of $0.31 on the 1st of April. This means that the annual payment will be 2.9% of the current stock price, which is in line with the average for the industry.

View our latest analysis for Chemung Financial

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

Unless the payments are sustainable, the dividend yield doesn't mean too much.

Chemung Financial has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past records don't necessarily translate into future results, the company's payout ratio of 23% also shows that Chemung Financial is able to comfortably pay dividends.

Looking forward, EPS is forecast to rise by 3.0% over the next 3 years. The future payout ratio could be 23% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Chemung Financial Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the annual payment back then was $1.04, compared to the most recent full-year payment of $1.24. This means that it has been growing its distributions at 1.8% per annum over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.

Chemung Financial Could Grow Its Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Chemung Financial has seen EPS rising for the last five years, at 5.4% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Chemung Financial Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Chemung Financial might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for Chemung Financial for free with public analyst estimates for the company. Is Chemung Financial not quite the opportunity you were looking for? Why not check out our selection of top 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.