The board of CNB Financial Corporation (NASDAQ:CCNE) has declared a dividend scheduled for payment on March 14th, amounting to $0.18 per share. This equates to an annual yield of 2.8% based on the current stock price, which aligns with the industry’s average.
Explore our latest analysis on CNB Financial
While a solid dividend yield is encouraging, it’s essential to assess the sustainability of the payment.
CNB Financial has a commendable track record of over a decade of dividend payments, reflecting a commitment to returning earnings to shareholders. According to CNB Financial’s most recent earnings report, the payout ratio stands at a reasonable 30%, indicating the company can comfortably make its dividend payments while retaining some earnings.
Looking ahead, earnings per share (EPS) are projected to increase by 79.9% over the next three years. Analysts suggest that the future payout ratio could drop to 20% during this period, which seems manageable for the company.
With a long-standing history of dividend payments, CNB Financial has maintained a stable dividend, which instills confidence in its future potential. The annual dividends have increased from $0.66 in 2015 to $0.72 currently, showing a growth rate of less than 1% per year. Although this growth may appear slow, the consistency over the past decade enhances its attractiveness.
CNB Financial’s investors likely appreciate the ongoing dividend income. However, there are challenges ahead. The company’s earnings per share have remained nearly unchanged over the last five years, raising concerns about the possibility of annual dividend increases.
In conclusion, we are satisfied with the consistency of the dividend payments and believe there is a favorable chance of this status continuing. However, with earnings stagnating, the company might face difficulties in sustaining the dividend in the future, despite its current viability. Investors should be aware that CNB Financial has previously stretched the limits of sustainability, which could happen again.
Market trends highlight the value placed on a steady dividend policy compared to one with more volatility. Nevertheless, it’s crucial for our readers to evaluate additional factors before investing. For instance, consider if management has personal financial stakes in the company by reviewing insider ownership in CNB Financial stock. If CNB Financial isn’t quite the investment opportunity you’re seeking, take a look at our selection of top dividend stocks.
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This article by Simply Wall St is general information. We provide insights based on historical data and analyst forecasts using an unbiased approach, and our articles are not financial advice. This does not constitute a recommendation to buy or sell any stock nor does it consider your financial objectives or situation. Our goal is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis may not include the latest price-sensitive announcements or qualitative factors. Simply Wall St does not have any positions in the stocks mentioned.
