Finward Bancorp (NASDAQ:FNWD) Has Affirmed Its Dividend Of $0.31

The board of Finward Bancorp (NASDAQ:FNWD) has announced that it will pay a dividend on the 6th of April, with investors receiving $0.31 per share. This means the dividend yield will be fairly typical at 3.5%.

View our latest analysis for Finward Bancorp

Finward Bancorp's Dividend Forecasted To Be Well Covered By Earnings

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

Having distributed dividends for at least 10 years, Finward Bancorp has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Finward Bancorp's payout ratio of 34% is a good sign as this means that earnings decently cover dividends.

Looking forward, EPS is forecast to rise by 8.0% over the next 3 years. The future payout ratio could be 34% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Finward Bancorp Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of $0.76 in 2013 to the most recent total annual payment of $1.24. This implies that the company grew its distributions at a yearly rate of about 5.0% over that duration. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

Finward Bancorp May Find It Hard To Grow The Dividend

Investors could be attracted to the stock based on the quality of its payment history. Earnings has been rising at 2.3% per annum over the last five years, which admittedly is a bit slow. If Finward Bancorp is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.

We Really Like Finward Bancorp's Dividend

Overall, we like to see the dividend staying consistent, and we think Finward Bancorp 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. 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. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Finward Bancorp stock. 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.