C&F Financial Co., Ltd. (NASDAQ:CFFI) is scheduled to trade ex-dividend in the next three days. The ex-dividend date is his one business day before the record date and is the cut-off date on which a shareholder can be on the company's books and receive dividend payments. The ex-dividend date is important because trades in the stock must be settled before the record date in order to receive the dividend. Therefore, if you purchased C&F Financial stock after March 14th, the dividend will be paid on his April 1st date, but you will not be entitled to receive it.
The company's next dividend payment will be $0.44 per share, following a total of $1.76 paid to shareholders last year. Based on the last year of payments, C&F Financial stock has a yield of approximately 3.4% on the current price of $51.99. If you buy this business for its dividend, you need to understand whether C&F Financial's dividend is reliable and sustainable. So we need to check if the dividends are covered, and if earnings are growing.
Check out our latest analysis for C&F Financial.
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. C&F Financial paid out a comfortable 25% of its profit last year.
Companies that pay out less in dividends than they earned in profit generally have more sustainable dividends. The lower the payout ratio, the more leeway a company has before being forced to cut its dividend.
Click here to see how much profit C&F Financial paid out over the last twelve months.
Are profits and dividends growing?
Companies with consistently growing earnings per share usually make the best dividend stocks, as it is easier to grow dividends per share. If profits decline significantly, the company may be forced to cut its dividend. With that in mind, we're encouraged by C&F Financial's steady growth, with earnings per share increasing by an average of 6.3% over the past five years.
Another important way to measure a company's dividend prospects is by measuring its historical dividend growth rate. C&F Financial has delivered an average dividend growth of 4.3% per year over the past 10 years. It's encouraging to see the company raising its dividend amid growing profits, suggesting that the company has at least some interest in rewarding shareholders.
Summary
Does C&F Financial have what it needs to maintain its dividend payments? C&F Financial has grown its earnings per share modestly in recent years, with more than half of its profits reinvested in the business. , which generally bodes well for the company's future prospects. C&F Financial ticks a lot of boxes for us from a dividend perspective, and we think these traits make the company worthy of further attention.
So while C&F Financial looks good from a dividend perspective, it's always worth staying up to date on the risks involved in this stock. According to our analysis, 1 warning sign for C&F Financial And you need to be aware of that before buying stocks.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
