Delving into the Dividend History, Yield, and Growth of NYCB
New York Community Bancorp Inc (NYCB, Financial) recently announced a dividend of $0.17 per share, payable on 2023-11-16, with the ex-dividend date set for 2023-11-03. As investors anticipate this forthcoming payment, it's vital to examine the company's dividend history, yield, and growth rates. Using the data from GuruFocus, this article explores New York Community Bancorp Inc's dividend performance and assesses its sustainability.
What Does New York Community Bancorp Inc Do?
New York Community Bancorp Inc is a bank holding company that operates through eight local divisions across multiple states. It competes for depositors in diverse markets with a comprehensive menu of products and services, and access to multiple service channels, including online banking, mobile banking, and banking by phone. The bank is also a prominent producer of multi-family loans in New York City.
A Glimpse at New York Community Bancorp Inc's Dividend History
Since 1994, New York Community Bancorp Inc has maintained a consistent dividend payment record, with dividends currently distributed on a quarterly basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Breaking Down New York Community Bancorp Inc's Dividend Yield and Growth
New York Community Bancorp Inc currently has a 12-month trailing dividend yield of 6.88% and a 12-month forward dividend yield of 6.88%. This suggests an expectation of consistent dividend payments over the next 12 months. Over the past decade, the company's annual dividends per share growth rate stands at -4.80%.
Based on New York Community Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of New York Community Bancorp Inc stock as of today is approximately 6.88%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, New York Community Bancorp Inc's dividend payout ratio is 0.17.
Assessing New York Community Bancorp Inc's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks New York Community Bancorp Inc's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
New York Community Bancorp Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. New York Community Bancorp Inc's revenue has increased by approximately 11.00% per year on average, a rate that outperforms approximately 72.19% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, New York Community Bancorp Inc's earnings increased by approximately 13.30% per year on average, a rate that outperforms approximately 63.99% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 8.10% outperforms approximately 51.2% of global competitors.
Conclusion
In conclusion, New York Community Bancorp Inc has a commendable record of consistent dividend payments, backed by a fair growth rate and profitability. The company's payout ratio and growth metrics indicate a sustainable dividend model for the foreseeable future. Therefore, investors seeking steady dividend income may find NYCB an appealing option. However, individual financial goals and risk tolerance should always guide investment decisions.
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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.
