Dime Community Bancshares (NASDAQ:DCOM) Is Due To Pay A Dividend Of $0.24

Dime Community Bancshares, Inc.'s (NASDAQ:DCOM) investors are due to receive a payment of $0.24 per share on 24th of January. This payment means that the dividend yield will be 3.0%, which is around the industry average.

Check out our latest analysis for Dime Community Bancshares

Dime Community Bancshares' Payment Expected To Have Solid Earnings Coverage

We aren't too impressed by dividend yields unless they can be sustained over time.

Dime Community Bancshares has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 27%, which means that Dime Community Bancshares would be able to pay its last dividend without pressure on the balance sheet.

Over the next 3 years, EPS is forecast to expand by 30.2%. Analysts forecast the future payout ratio could be 22% over the same time horizon, which is a number we think the company can maintain.

Dime Community Bancshares Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2012, the dividend has gone from $0.864 total annually to $0.96. This works out to be a compound annual growth rate (CAGR) of approximately 1.1% a year over that time. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Dime Community Bancshares has seen EPS rising for the last five years, at 19% per annum. Dime Community Bancshares definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Dime Community Bancshares Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Dime Community Bancshares might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 4 Dime Community Bancshares analysts we track are forecasting continued growth with our free report on analyst estimates for the company. 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.