Does ConnectOne Bancorp’s (CNOB) Outsized Dividend Growth and Rosy EPS Outlook Strengthen Its Investment Case?

• ConnectOne Bancorp recently reported a dividend yield of 2.93%, surpassing both its Banks - Northeast industry group and the S&P 500, and noted four dividend increases over the past five years averaging a 17% annual rise.
• An interesting insight is that analyst consensus projects ConnectOne Bancorp’s 2025 earnings per share could grow by over 40% year over year, highlighting optimism around its ongoing performance improvements.
• To assess how these dividend achievements and growth forecasts shift the outlook, let's review their impact on ConnectOne's broader investment narrative.

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ConnectOne Bancorp Investment Narrative Recap

To believe in ConnectOne Bancorp as an investment, one must trust in the company’s ability to deliver dividend growth, integrate its First of Long Island merger, and capitalize on its expanded Northeast footprint. The recent report of a strong 2.93% dividend yield and expectations for substantial earnings per share growth supports near-term optimism, but does not materially reduce the primary risk tied to elevated exposure to commercial real estate and geographic concentration, both of which remain critical considerations for shareholders.

The most relevant recent announcement is the ongoing increase and payout of common and preferred dividends, underscoring management’s commitment to consistent shareholder returns even as the company works through post-merger integration and market headwinds. This steady dividend activity complements current catalysts for deeper market expansion, yet the sustainability of these payments may hinge on how effectively the bank navigates credit risk and maintains profitability.

However, despite these positives, investors should be aware that the bank’s growing commercial real estate exposure could pose outsized risks if market conditions shift...

Read the full narrative on ConnectOne Bancorp (it's free!)

ConnectOne Bancorp's outlook anticipates $868.6 million in revenue and $469.2 million in earnings by 2028. Achieving this would require a 53.1% annual revenue growth rate and a $437.8 million increase in earnings from the current $31.4 million.

Uncover how ConnectOne Bancorp's forecasts yield a $29.12 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members range widely between US$22.25 and US$42.81 per share. This broad span of views sits against the backdrop of accelerating dividend growth and ongoing merger integration, inviting you to explore how others interpret ConnectOne’s risk and opportunity balance.

Explore 3 other fair value estimates on ConnectOne Bancorp - why the stock might be worth 13% less than the current price!

Build Your Own ConnectOne Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ConnectOne Bancorp research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free ConnectOne Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ConnectOne Bancorp's overall financial health at a glance.

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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.

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