OceanFirst Financial (NASDAQ:OCFC) Will Pay A Dividend Of $0.20
OceanFirst Financial Corp. (NASDAQ:OCFC) has announced a dividend payment of $0.20 per share, scheduled for November 14, yielding 4.3%. The company has a strong history of dividend payments, with a payout ratio of 62%, indicating solid earnings coverage. EPS is expected to rise by 104.8% over the next three years, with a future payout ratio of 39%. OceanFirst has consistently grown its dividends, with a 4.4% annual increase since 2015, making it an attractive option for dividend investors.
The board of OceanFirst Financial Corp. (NASDAQ:OCFC) has announced that it will pay a dividend of $0.20 per share on the 14th of November. The dividend yield will be 4.3% based on this payment which is still above the industry average.
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OceanFirst Financial's Payment Expected To Have Solid Earnings Coverage
A big dividend yield for a few years doesn't mean much if it can't be sustained.
Having distributed dividends for at least 10 years, OceanFirst Financial has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but OceanFirst Financial's payout ratio of 62% is a good sign as this means that earnings decently cover dividends.
Looking forward, EPS is forecast to rise by 104.8% over the next 3 years. Analysts estimate the future payout ratio will be 39% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
Check out our latest analysis for OceanFirst Financial
OceanFirst Financial Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2015, the annual payment back then was $0.52, compared to the most recent full-year payment of $0.80. This means that it has been growing its distributions at 4.4% per annum over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.
The Dividend Has Growth Potential
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. OceanFirst Financial has impressed us by growing EPS at 7.3% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.
We Really Like OceanFirst Financial'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. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.
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. Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 OceanFirst Financial analysts we track are forecasting continued growth with our free report on analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
