Our analysis is based on comparing Northfield Bancorp, Inc. (New Jersey) with the following peers – Flushing Financial Corporation, Greene County Bancorp, Inc., Dime Community Bancshares, Inc. and Astoria Financial Corporation (FFIC-US, GCBC-US, DCOM-US and AF-US).
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), NFBK-US paid a medium quality dividend, which represents a yield of 1.79% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 1.31x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to March 31, 2017), NFBK-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.72x), investing cash flow (coverage of -6.98x), issuance cash flow (coverage of 8.40x) and twelve-month prior cash (coverage of 1.33x), for a total dividend coverage of 2.02x.
NFBK-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -6.19x) and net share buybacks (coverage of -0.15x). Thus, the total coverage including share buybacks is 2.46x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||0.27||3.51||1.8||1.68||1.45||2.23|
|Dividend Payout (%)||58.06||70.59||63.41||62.22||54.39||45.71|
A complete list of metrics and analysis is available on the company page.
Northfield Bancorp, Inc. engages in the provision of banking and financial services. Its principal business consists of gathering deposits, and to a lesser extent, borrowing funds, and using such funds to originate multifamily real estate loans and commercial real estate loans, purchase investment securities including mortgage-backed securities and corporate bonds, as well as deposit funds in other financial institutions. The Company also offers construction and land loans, commercial and industrial loans, one- to four-family residential mortgage loans, and home equity loans and lines of credit. Northfield Bancorp was founded on March 01, 1887 and is headquartered in Woodbridge, NJ.
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