Northfield Bancorp (Staten Island NY) (NASDAQ:NFBK) Has Announced A Dividend Of $0.13

Northfield Bancorp, Inc. (Staten Island, NY)'s (NASDAQ:NFBK) investors are due to receive a payment of $0.13 per share on 22nd of November. The dividend yield will be 6.0% based on this payment which is still above the industry average.

See our latest analysis for Northfield Bancorp (Staten Island NY)

Northfield Bancorp (Staten Island NY)'s Payment Expected To Have Solid Earnings Coverage

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained.

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 53% is a good sign as this means that earnings decently cover dividends.

EPS is set to fall by 1.0% over the next 3 years. Despite that, analysts estimate the future payout ratio could be 58% over the same time period, which is in a pretty comfortable range.

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

The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.24 in 2013 to the most recent total annual payment of $0.52. This implies that the company grew its distributions at a yearly rate of about 8.0% over that duration. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.

The Dividend Has Growth Potential

The company's investors will be pleased to have been receiving dividend income for some time. Northfield Bancorp (Staten Island NY) has seen EPS rising for the last five years, at 9.4% per annum. 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.

We Really Like Northfield Bancorp (Staten Island NY)'s Dividend

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Northfield Bancorp (Staten Island NY) that investors should take into consideration. 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.