Pathfinder Bancorp (NASDAQ:PBHC) Has Affirmed Its Dividend Of $0.09

The board of Pathfinder Bancorp, Inc. (NASDAQ:PBHC) has announced that it will pay a dividend of $0.09 per share on the 19th of May. This means the annual payment will be 2.2% of the current stock price, which is lower than the industry average.

Check out our latest analysis for Pathfinder Bancorp

Pathfinder Bancorp's Earnings Will Easily Cover The Distributions

While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.

Pathfinder Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past records don't necessarily translate into future results, the company's payout ratio of 20% also shows that Pathfinder Bancorp is able to comfortably pay dividends.

Looking forward, earnings per share could rise by 14.4% over the next year if the trend from the last few years continues. If the dividend continues on this path, the future payout ratio could be 20% by next year, which we think can be pretty sustainable going forward.

Pathfinder Bancorp Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.0729 in 2013, and the most recent fiscal year payment was $0.36. This means that it has been growing its distributions at 17% per annum over that time. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Pathfinder Bancorp has seen EPS rising for the last five years, at 14% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for Pathfinder Bancorp's prospects of growing its dividend payments in the future.

We Really Like Pathfinder Bancorp's Dividend

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 1 warning sign for Pathfinder Bancorp that investors should know about before committing capital to this stock. Is Pathfinder Bancorp not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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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.

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