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. Based on this payment, the dividend yield will be 3.0%, which is fairly typical for the industry.

View our latest analysis for Dime Community Bancshares

Dime Community Bancshares' Dividend Forecasted To Be Well Covered By Earnings

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.

Having distributed dividends for at least 10 years, Dime Community Bancshares has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Dime Community Bancshares' payout ratio of 27% is a good sign as this means that earnings decently cover dividends.

Over the next 3 years, EPS is forecast to expand by 30.2%. Analysts estimate the future payout ratio will be 22% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.

Dime Community Bancshares Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2013, 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

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Dime Community Bancshares has impressed us by growing EPS at 19% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Dime Community Bancshares' prospects of growing its dividend payments in the future.

Dime Community Bancshares 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. 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. 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. Is Dime Community Bancshares 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.