Pathfinder Bancorp (NASDAQ:PBHC) Is Due To Pay A Dividend Of $0.10

Pathfinder Bancorp, Inc.'s (NASDAQ:PBHC) investors are due to receive a payment of $0.10 per share on 9th of May. This means the annual payment will be 2.4% of the current stock price, which is lower than the industry average.

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Pathfinder Bancorp's Payment Expected To Have Solid Earnings Coverage

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

Pathfinder Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Based on Pathfinder Bancorp's last earnings report, the payout ratio is at a decent 65%, meaning that the company is able to pay out its dividend with a bit of room to spare.

EPS is set to fall by 5.1% over the next 12 months if recent trends continue. However, if the dividend continues along recent trends, we estimate the future payout ratio could reach 75%, meaning that most of the company's earnings is being paid out to shareholders.

See our latest analysis for Pathfinder Bancorp

Pathfinder Bancorp Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the annual payment back then was $0.0729, compared to the most recent full-year payment of $0.40. This means that it has been growing its distributions at 19% per annum over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

Dividend Growth May Be Hard To Come By

The company's investors will be pleased to have been receiving dividend income for some time. Let's not jump to conclusions as things might not be as good as they appear on the surface. In the last five years, Pathfinder Bancorp's earnings per share has shrunk at approximately 5.1% per annum. A modest decline in earnings isn't great, and it makes it quite unlikely that the dividend will grow in the future unless that trend can be reversed.

Our Thoughts On Pathfinder Bancorp's Dividend

Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. The company hasn't been paying a very consistent dividend over time, despite only paying out a small portion of earnings. This company is not in the top tier of income providing stocks.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 3 warning signs for Pathfinder Bancorp that investors should take into consideration. Is Pathfinder Bancorp 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.