Home Federal Bancorp of Louisiana's (NASDAQ:HFBL) Dividend Will Be $0.125

The board of Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) has announced that it will pay a dividend of $0.125 per share on the 12th of February. Based on this payment, the dividend yield will be 3.6%, which is fairly typical for the industry.

Check out our latest analysis for Home Federal Bancorp of Louisiana

Home Federal Bancorp of Louisiana's Payment Expected To Have Solid Earnings Coverage

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.

Home Federal Bancorp of Louisiana has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Home Federal Bancorp of Louisiana's payout ratio of 28% is a good sign as this means that earnings decently cover dividends.

If the trend of the last few years continues, EPS will grow by 10.5% over the next 12 months. If the dividend continues on this path, the future payout ratio could be 29% by next year, which we think can be pretty sustainable going forward.

Home Federal Bancorp of Louisiana Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The dividend has gone from an annual total of $0.12 in 2014 to the most recent total annual payment of $0.50. This means that it has been growing its distributions at 15% per annum over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that Home Federal Bancorp of Louisiana has been growing its earnings per share at 10% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Home Federal Bancorp of Louisiana's prospects of growing its dividend payments in the future.

We Really Like Home Federal Bancorp of Louisiana's Dividend

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Home Federal Bancorp of Louisiana that you should be aware of before investing. 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.