Yahoo Finance Why You Might Be Interested In Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) For Its Upcoming Dividend
Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) is about to trade ex-dividend in the next four days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Peoples Bancorp of North Carolina investors that purchase the stock on or after the 3rd of June will not receive the dividend, which will be paid on the 14th of June.
The company's next dividend payment will be US$0.19 per share, on the back of last year when the company paid a total of US$0.92 to shareholders. Based on the last year's worth of payments, Peoples Bancorp of North Carolina has a trailing yield of 3.1% on the current stock price of US$29.80. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Peoples Bancorp of North Carolina can afford its dividend, and if the dividend could grow.
View our latest analysis for Peoples Bancorp of North Carolina
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately Peoples Bancorp of North Carolina's payout ratio is modest, at just 25% of profit.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Peoples Bancorp of North Carolina earnings per share are up 6.7% per annum over the last five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Peoples Bancorp of North Carolina has delivered an average of 24% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
To Sum It Up
Is Peoples Bancorp of North Carolina an attractive dividend stock, or better left on the shelf? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. In summary, Peoples Bancorp of North Carolina appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
In light of that, while Peoples Bancorp of North Carolina has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Peoples Bancorp of North Carolina has 2 warning signs we think you should be aware of.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are 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.
