Greene County Bancorp (NASDAQ:GCBC) Is Paying Out A Dividend Of $0.09

The board of Greene County Bancorp, Inc. (NASDAQ:GCBC) has announced that it will pay a dividend on the 30th of May, with investors receiving $0.09 per share. Including this payment, the dividend yield on the stock will be 1.7%, which is a modest boost for shareholders' returns.

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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.

Having distributed dividends for at least 10 years, Greene County Bancorp has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Greene County Bancorp's latest earnings report puts its payout ratio at 23%, showing that the company can pay out its dividends comfortably.

Over the next year, EPS could expand by 7.4% if recent trends continue. If the dividend continues on this path, the future payout ratio could be 23% by next year, which we think can be pretty sustainable going forward.

Check out our latest analysis for Greene County Bancorp

Greene County Bancorp Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2015, the annual payment back then was $0.18, compared to the most recent full-year payment of $0.36. This works out to be a compound annual growth rate (CAGR) of approximately 7.2% a year over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.

The Dividend Has Growth Potential

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. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

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. 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. Are management backing themselves to deliver performance? Check their shareholdings in Greene County Bancorp in our latest insider ownership analysis. 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.