Shares of Elmira Savings Bank (NASDAQ:ESBK) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.23 per share, investors must have owned the shares prior to 07 March 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. What does this mean for current shareholders and potential investors? Below, I will explain how holding Elmira Savings Bank can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Elmira Savings Bank
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Does it pay an annual yield higher than 75% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has dividend per share risen in the past couple of years?
- Does earnings amply cover its dividend payments?
- Will it be able to continue to payout at the current rate in the future?
How well does Elmira Savings Bank fit our criteria?
The current trailing twelve-month payout ratio for the stock is 71.78%, meaning the dividend is sufficiently covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of ESBK it has increased its DPS from $0.63 to $0.92 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes ESBK a true dividend rockstar. In terms of its peers, Elmira Savings Bank generates a yield of 4.52%, which is high for Mortgage stocks.
With this in mind, I definitely rank Elmira Savings Bank as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three pertinent factors you should further research:
- Valuation: What is ESBK worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether ESBK is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Elmira Savings Bank’s board and the CEO’s back ground.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.