OP Bancorp (NASDAQ:OPBK) Has Affirmed Its Dividend Of $0.12
OP Bancorp (NASDAQ:OPBK) has confirmed a dividend payment of $0.12 per share, scheduled for November 20, yielding 3.5%. The company has a 7-year history of dividend payments, with a payout ratio of 31%, indicating sustainability. EPS is expected to grow by 16% over the next year, supporting future dividends. Despite a relatively short dividend history, OP Bancorp has shown consistent growth, making it a potentially attractive dividend opportunity for investors.
The board of OP Bancorp (NASDAQ:OPBK) has announced that it will pay a dividend of $0.12 per share on the 20th of November. Based on this payment, the dividend yield will be 3.5%, which is fairly typical for the industry.
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OP Bancorp's Dividend Forecasted To Be Well Covered By Earnings
We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.
OP Bancorp has established itself as a dividend paying company, given its 7-year history of distributing earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio of 31%shows that OP Bancorp would be able to pay its last dividend without pressure on the balance sheet.
Over the next year, EPS is forecast to expand by 16.0%. If the dividend continues on this path, the future payout ratio could be 31% by next year, which we think can be pretty sustainable going forward.
See our latest analysis for OP Bancorp
OP Bancorp Is Still Building Its Track Record
Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The annual payment during the last 7 years was $0.20 in 2018, and the most recent fiscal year payment was $0.48. This means that it has been growing its distributions at 13% per annum over that time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that OP Bancorp has been growing its earnings per share at 13% a year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
We Really Like OP 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. 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.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Are management backing themselves to deliver performance? Check their shareholdings in OP Bancorp in our latest insider ownership analysis. Is OP Bancorp not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
