Northfield Bancorp (Staten Island NY) (NASDAQ:NFBK) Has Affirmed Its Dividend Of $0.13

The board of Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) has announced that it will pay a dividend of $0.13 per share on the 21st of May. The dividend yield will be 4.5% based on this payment which is still above the industry average.

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Northfield Bancorp (Staten Island NY)'s Dividend Forecasted To Be Well Covered By Earnings

If the payments aren't sustainable, a high yield for a few years won't matter that much.

Northfield Bancorp (Staten Island NY) 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 Northfield Bancorp (Staten Island NY)'s payout ratio of 68% is a good sign as this means that earnings decently cover dividends.

Looking forward, earnings per share is forecast to rise by 29.8% over the next year. If the dividend continues along recent trends, we estimate the future payout ratio will be 58%, which is in the range that makes us comfortable with the sustainability of the dividend.

Check out our latest analysis for Northfield Bancorp (Staten Island NY)

Northfield Bancorp (Staten Island NY) Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was $0.24 in 2015, and the most recent fiscal year payment was $0.52. This implies that the company grew its distributions at a yearly rate of about 8.0% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.

Dividend Growth May Be Hard To Achieve

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Let's not jump to conclusions as things might not be as good as they appear on the surface. However, Northfield Bancorp (Staten Island NY)'s EPS was effectively flat over the past five years, which could stop the company from paying more every year.

Our Thoughts On Northfield Bancorp (Staten Island NY)'s Dividend

Overall, we think Northfield Bancorp (Staten Island NY) is a solid choice as a dividend stock, even though the dividend wasn't raised this year. While the payments look sustainable for now, earnings have been shrinking so the dividend could come under pressure in the future. Taking all of this into consideration, the dividend looks viable moving forward, but investors should be mindful that the company has pushed the boundaries of sustainability in the past and may do so again.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Taking the debate a bit further, we've identified 1 warning sign for Northfield Bancorp (Staten Island NY) that investors need to be conscious of moving forward. Is Northfield Bancorp (Staten Island NY) not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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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.