Be Sure To Check Out United Bancorp, Inc. (NASDAQ:UBCP) Before It Goes Ex-Dividend

United Bancorp, Inc. (NASDAQ:UBCP) is about to trade ex-dividend in the next 4 days. You will need to purchase shares before the 9th of March to receive the dividend, which will be paid on the 19th of March.

United Bancorp's next dividend payment will be US$0.24 per share, and in the last 12 months, the company paid a total of US$0.57 per share. Last year's total dividend payments show that United Bancorp has a trailing yield of 3.9% on the current share price of $14.65. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

View our latest analysis for United 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. That's why it's good to see United Bancorp paying out a modest 39% of its earnings.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

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

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. Fortunately for readers, United Bancorp's earnings per share have been growing at 17% a year for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. United Bancorp's dividend payments are broadly unchanged compared to where they were 10 years ago.

The Bottom Line

Has United Bancorp got what it takes to maintain its dividend payments? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. Overall, United Bancorp looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, we've found 2 warning signs for United Bancorp that we recommend you consider before investing in the business.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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