Northfield Bancorp, Inc. (New Jersey) : NFBK-US: Dividend Analysis : November 08th, 2017 (record date) : By the numbers : November 10, 2017

Our analysis is based on comparing Northfield Bancorp, Inc. (New Jersey) with the following peers – Flushing Financial Corporation, Greene County Bancorp, Inc. and Dime Community Bancshares, Inc. (FFIC-US, GCBC-US and DCOM-US).

Northfield Bancorp, Inc. (New Jersey)’s dividend yield is 2.10 percent and its dividend payout is 43.24 percent. This compares to a peer average dividend yield of 2.37 percent and a payout level of 42.38 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. Supporting this is the company’s average dividend quality score of 42 out of a possible score of 100, which points to some weakness in being able to sustain the higher payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), NFBK-US paid a medium quality dividend, which represents a yield of 1.98% 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.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 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 0.98x), for a total dividend coverage of 2.07x.

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.

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0.27 3.51 1.8 1.68 1.45 2.1
Dividend Payout (%) 58.06 70.59 63.41 62.22 54.39 43.24

A complete list of metrics and analysis is available on the company page.

Company Profile

Northfield Bancorp, Inc. engages in the provision of banking and financial services. Its also involves in gathering of 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 oter financial institutions. The company was founded on March 01, 1887 and is headquartered in Woodbridge, NJ.


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