Northfield Bancorp, Inc. (Staten Island, NY)'s (NASDAQ:NFBK) investors are due to receive a payment of $0.13 per share on 21st of May. The dividend yield will be 5.2% based on this payment which is still above the industry average.

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Northfield Bancorp (Staten Island NY)'s Dividend Forecasted To Be Well Covered By Earnings

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained.

Northfield Bancorp (Staten Island NY) has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 68%, which means that Northfield Bancorp (Staten Island NY) would be able to pay its last dividend without pressure on the balance sheet.

Looking forward, earnings per share is forecast to rise by 27.2% over the next year. Assuming the dividend continues along recent trends, we think the future payout ratio could be 59% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Northfield Bancorp (Staten Island NY)

Northfield Bancorp (Staten Island NY) 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 $0.24, compared to the most recent full-year payment of $0.52. This implies that the company grew its distributions at a yearly rate of about 8.0% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.

Dividend Growth May Be Hard To Achieve

The company's investors will be pleased to have been receiving dividend income for some time. However, initial appearances might be deceiving. Unfortunately, Northfield Bancorp (Staten Island NY)'s earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year.

In Summary

Overall, a consistent dividend is a good thing, and we think that Northfield Bancorp (Staten Island NY) has the ability to continue this into the future. With shrinking earnings, the company may see some issues maintaining the dividend even though they look pretty sustainable for now. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. 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 1 warning sign for Northfield Bancorp (Staten Island NY) that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.