NASDAQ:FMNB) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You can purchase shares before the 10th of September in order to receive the dividend, which the company will pay on the 30th of September.” data-reactid=”28″>Readers hoping to buy Farmers National Banc Corp. (NASDAQ:FMNB) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You can purchase shares before the 10th of September in order to receive the dividend, which the company will pay on the 30th of September.
Farmers National Banc’s next dividend payment will be US$0.11 per share, and in the last 12 months, the company paid a total of US$0.44 per share. Looking at the last 12 months of distributions, Farmers National Banc has a trailing yield of approximately 3.7% on its current stock price of $11.89. If you buy this business for its dividend, you should have an idea of whether Farmers National Banc’s dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it’s growing.
View our latest analysis for Farmers National Banc ” data-reactid=”30″> View our latest analysis for Farmers National Banc
If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. Fortunately Farmers National Banc’s payout ratio is modest, at just 31% of profit.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
here to see the company’s payout ratio, plus analyst estimates of its future dividends.” data-reactid=”37″>Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. It’s encouraging to see Farmers National Banc has grown its earnings rapidly, up 23% a year for the past five years.
Another key way to measure a company’s dividend prospects is by measuring its historical rate of dividend growth. Farmers National Banc has delivered 6.2% dividend growth per year on average over the past 10 years. We’re glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
The Bottom Line
From a dividend perspective, should investors buy or avoid Farmers National Banc? Companies like Farmers National Banc that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. Perhaps even more importantly – this can sometimes signal management is focused on the long term future of the business. In summary, Farmers National Banc appears to have some promise as a dividend stock, and we’d suggest taking a closer look at it.
2 warning signs for Farmers National Banc (1 is a bit concerning!) that you ought to be aware of before buying the shares.” data-reactid=”55″>In light of that, while Farmers National Banc has an appealing dividend, it’s worth knowing the risks involved with this stock. To help with this, we’ve discovered 2 warning signs for Farmers National Banc (1 is a bit concerning!) that you ought to be aware of before buying the shares.
checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.” data-reactid=”56″>If you’re in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”57″>This article by Simply Wall St is general in nature. 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.
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