Flushing Financial (NASDAQ:FFIC) Has Re-Affirmed Its Dividend Of US$0.21

Flushing Financial Corporation's (NASDAQ:FFIC) investors are due to receive a payment of US$0.21 per share on 25th of June. The dividend yield will be 3.6% based on this payment which is still above the industry average.

See our latest analysis for Flushing Financial

Flushing Financial's Payment Has Solid Earnings Coverage

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. The last dividend was quite easily covered by Flushing Financial's earnings. This means that a large portion of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 33.3%. If the dividend continues along recent trends, we estimate the payout ratio will be 36%, which is in the range that makes us comfortable with the sustainability of the dividend.

Flushing Financial Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The first annual payment during the last 10 years was US$0.52 in 2011, and the most recent fiscal year payment was US$0.84. This means that it has been growing its distributions at 4.9% per annum over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

The Dividend Has Growth Potential

The company's investors will be pleased to have been receiving dividend income for some time. Earnings per share has been crawling upwards at 2.5% per year. The company has been growing at a pretty soft 2.5% per annum, and is paying out quite a lot of its earnings to shareholders. This isn't necessarily bad, but we wouldn't expect rapid dividend growth in the future.

We Really Like Flushing Financial's Dividend

Overall, we like to see the dividend staying consistent, and we think Flushing Financial might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 2 warning signs for Flushing Financial that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our curated list of strong dividend payers.

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