Stock Analysis

Four Days Left To Buy Kentucky First Federal Bancorp (NASDAQ:KFFB) Before The Ex-Dividend Date

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It looks like Kentucky First Federal Bancorp (NASDAQ:KFFB) is about to go ex-dividend in the next 4 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase Kentucky First Federal Bancorp's shares before the 30th of January in order to be eligible for the dividend, which will be paid on the 16th of February.

The company's next dividend payment will be US$0.10 per share, on the back of last year when the company paid a total of US$0.40 to shareholders. Based on the last year's worth of payments, Kentucky First Federal Bancorp has a trailing yield of 6.0% on the current stock price of $6.65. If you buy this business for its dividend, you should have an idea of whether Kentucky First Federal Bancorp's dividend is reliable and sustainable. As a result, readers should always check whether Kentucky First Federal Bancorp has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Kentucky First Federal 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. Kentucky First Federal Bancorp paid out a disturbingly high 235% of its profit as dividends last year, which makes us concerned there's something we don't fully understand in the business.

When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut.

Click here to see how much of its profit Kentucky First Federal Bancorp paid out over the last 12 months.

NasdaqGM:KFFB Historic Dividend January 25th 2023

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Kentucky First Federal Bancorp earnings per share are up 8.9% per annum over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. It looks like the Kentucky First Federal Bancorp dividends are largely the same as they were 10 years ago.

To Sum It Up

Should investors buy Kentucky First Federal Bancorp for the upcoming dividend? While we like that its earnings are growing somewhat, we're not enamored that it's paying out 235% of last year's earnings. All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now.

Although, if you're still interested in Kentucky First Federal Bancorp and want to know more, you'll find it very useful to know what risks this stock faces. For example, we've found 2 warning signs for Kentucky First Federal Bancorp that we recommend you consider before investing in the business.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

What are the risks and opportunities for Kentucky First Federal Bancorp?

Kentucky First Federal Bancorp operates as the holding company for First Federal Savings and Loan Association of Hazard, and Frankfort First Bancorp, Inc.

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  • Does not have a meaningful market cap ($55M)

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