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

Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) will pay a dividend of $0.13 on the 19th of November. The dividend yield will be 4.8% based on this payment which is still above the industry average.

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Northfield Bancorp (Staten Island NY)'s Earnings Will Easily Cover The Distributions

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

Having distributed dividends for at least 10 years, Northfield Bancorp (Staten Island NY) has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 53%, which means that Northfield Bancorp (Staten Island NY) would be able to pay its last dividend without pressure on the balance sheet.

Over the next year, EPS is forecast to expand by 27.6%. If the dividend continues on this path, the future payout ratio could be 46% by next year, which we think can be pretty sustainable going forward.

See 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. Since 2015, the dividend has gone from $0.28 total annually to $0.52. This works out to be a compound annual growth rate (CAGR) of approximately 6.4% a year over that time. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

We Could See Northfield Bancorp (Staten Island NY)'s Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Northfield Bancorp (Staten Island NY) has been growing its earnings per share at 5.8% a year over the past five years. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.

Northfield Bancorp (Staten Island NY) Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Northfield Bancorp (Staten Island NY) might even raise payments in the future. 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. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. 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.