County Bancorp, Inc. (NASDAQ:ICBK) is about to trade ex-dividend in the next four days. Investors can purchase shares before the 4th of March in order to be eligible for this dividend, which will be paid on the 19th of March.
County Bancorp's next dividend payment will be US$0.10 per share. Last year, in total, the company distributed US$0.28 to shareholders. Based on the last year's worth of payments, County Bancorp has a trailing yield of 1.8% on the current stock price of $22.61. If you buy this business for its dividend, you should have an idea of whether County Bancorp's dividend is reliable and sustainable. As a result, readers should always check whether County Bancorp has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for County Bancorp
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. County Bancorp paid out a comfortable 44% of its profit last year.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. County Bancorp's earnings per share have fallen at approximately 19% a year over the previous five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, six years ago, County Bancorp has lifted its dividend by approximately 16% a year on average.
Final Takeaway
Is County Bancorp worth buying for its dividend? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.
So if you want to do more digging on County Bancorp, you'll find it worthwhile knowing the risks that this stock faces. For example, we've found 4 warning signs for County Bancorp that we recommend you consider before investing in the business.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
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This article by Simply Wall St is general in nature. 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.
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