Assessing the Sustainability of NYCB's Dividend Payments
New York Community Bancorp Inc (NYCB, Financial) recently announced a dividend of $0.05 per share, payable on 2024-02-28, with the ex-dividend date set for 2024-02-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into New York Community Bancorp Inc's dividend performance and assess its sustainability.
What Does New York Community Bancorp Inc Do?
New York Community Bancorp Inc is a bank holding company that operates through various local divisions. It competes in diverse markets by offering a comprehensive menu of products and services across multiple service channels. Notably, it is a leading producer of multi-family loans in New York City, underscoring its significant presence in the financial sector.
A Glimpse at New York Community Bancorp Inc's Dividend History
New York Community Bancorp Inc has a longstanding history of dividend payments, dating back to 1994. The company has established a reliable pattern of quarterly distributions to its shareholders, illustrating its commitment to returning value.
Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down New York Community Bancorp Inc's Dividend Yield and Growth
New York Community Bancorp Inc's trailing dividend yield stands at an impressive 13.88%, with a forward dividend yield projected at 4.08%. This disparity indicates potential adjustments in future dividend payments. The company's historical dividends per share growth rate over the past decade is at -4.80%, which requires close monitoring by investors.
The 5-year yield on cost for New York Community Bancorp Inc stock is approximately 13.90%, a figure that provides an insight into the returns shareholders might expect based on historical growth rates.
The Sustainability Question: Payout Ratio and Profitability
An essential measure of dividend sustainability is the payout ratio. New York Community Bancorp Inc's ratio currently stands at 1.10, which may raise concerns about the long-term sustainability of its dividend payments. Moreover, the company's profitability rank is 5 out of 10, indicating fair profitability with a consistent record of net profit over the past decade.
Growth Metrics: The Future Outlook
Robust growth metrics are vital for the continuation of dividend payments. New York Community Bancorp Inc's growth rank is 5 out of 10, suggesting a fair growth outlook. The company's revenue per share and growth rates are strong, with an average annual increase of 11.00%. Additionally, the 3-year EPS growth rate and 5-year EBITDA growth rate outperform a significant portion of global competitors, indicating a solid foundation for future dividends.
Concluding Thoughts on New York Community Bancorp Inc's Dividend Profile
In conclusion, while New York Community Bancorp Inc's dividend yield is attractive, the declining growth rate and payout ratio warrant careful consideration. The company's fair profitability and growth metrics present a mixed picture, suggesting that while the dividends are currently sustainable, investors should keep an eye on these indicators for future payments. For those seeking high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to discover similar investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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