Hanover Bancorp (NASDAQ:HNVR) Is Due To Pay A Dividend Of $0.10

The board of Hanover Bancorp, Inc. (NASDAQ:HNVR) has announced that it will pay a dividend of $0.10 per share on the 20th of November. This payment means the dividend yield will be 1.9%, which is below the average for the industry.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Hanover Bancorp's Earnings Will Easily Cover The Distributions

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

Hanover Bancorp has a short history of paying out dividends, with its current track record at only 3 years. Taking data from Hanover Bancorp's last earnings report, the payout ratio is at a decent 26%, meaning that the company is able to pay out its dividend with some room to spare.

Over the next 3 years, EPS is forecast to expand by 164.1%. The future payout ratio could be 13% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

View our latest analysis for Hanover Bancorp

Hanover Bancorp Is Still Building Its Track Record

The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 3 years, which isn't that long in the grand scheme of things. The most recent annual payment of $0.40 is about the same as the annual payment 3 years ago. Hanover Bancorp hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

The Dividend's Growth Prospects Are Limited

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Earnings per share has been crawling upwards at 4.9% per year. While growth may be thin on the ground, Hanover Bancorp could always pay out a higher proportion of earnings to increase shareholder returns.

Our Thoughts On Hanover Bancorp's Dividend

Overall, we think Hanover Bancorp is a solid choice as a dividend stock, even though the dividend wasn't raised this year. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for Hanover Bancorp for free with public analyst estimates for the company. Is Hanover Bancorp not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.