Greene County Bancorp (NASDAQ:GCBC) Has Announced A Dividend Of $0.09

The board of Greene County Bancorp, Inc. (NASDAQ:GCBC) has announced that it will pay a dividend of $0.09 per share on the 28th of February. This means the annual payment will be 1.4% of the current stock price, which is lower than the industry average.

View our latest analysis for Greene County Bancorp

Greene County Bancorp's Earnings Will Easily Cover The Distributions

If it is predictable over a long period, even low dividend yields can be attractive.

Greene County Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Using data from its latest earnings report, Greene County Bancorp's payout ratio sits at 11%, an extremely comfortable number that shows that it can pay its dividend.

If the trend of the last few years continues, EPS will grow by 7.4% over the next 12 months. If the dividend continues on this path, the future payout ratio could be 22% by next year, which we think can be pretty sustainable going forward.

Greene County Bancorp Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The dividend has gone from an annual total of $0.175 in 2015 to the most recent total annual payment of $0.36. This works out to be a compound annual growth rate (CAGR) of approximately 7.5% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

Greene County Bancorp Could Grow Its Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Greene County Bancorp has been growing its earnings per share at 7.4% a year over the past five years. Greene County Bancorp definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Greene County Bancorp's Dividend

Overall, we like to see the dividend staying consistent, and we think Greene County Bancorp might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. 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. See if management have their own wealth at stake, by checking insider shareholdings in Greene County Bancorp stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.