Advertisement
U.S. markets open in 1 hour 56 minutes
  • S&P Futures

    5,306.75
    -1.50 (-0.03%)
     
  • Dow Futures

    40,141.00
    -3.00 (-0.01%)
     
  • Nasdaq Futures

    18,497.00
    -6.75 (-0.04%)
     
  • Russell 2000 Futures

    2,139.90
    +1.50 (+0.07%)
     
  • Crude Oil

    82.47
    +1.12 (+1.38%)
     
  • Gold

    2,233.00
    +20.30 (+0.92%)
     
  • Silver

    24.75
    -0.00 (-0.01%)
     
  • EUR/USD

    1.0796
    -0.0034 (-0.31%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.99
    +0.21 (+1.64%)
     
  • dólar/libra

    1.2622
    -0.0016 (-0.12%)
     
  • USD/JPY

    151.3860
    +0.1400 (+0.09%)
     
  • Bitcoin USD

    70,692.70
    +632.16 (+0.90%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,956.15
    +24.17 (+0.30%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Here's What We Like About Kearny Financial's (NASDAQ:KRNY) Upcoming Dividend

Kearny Financial Corp. (NASDAQ:KRNY) stock is about to trade ex-dividend in 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Kearny Financial investors that purchase the stock on or after the 7th of February will not receive the dividend, which will be paid on the 22nd of February.

The company's upcoming dividend is US$0.11 a share, following on from the last 12 months, when the company distributed a total of US$0.44 per share to shareholders. Based on the last year's worth of payments, Kearny Financial has a trailing yield of 4.6% on the current stock price of $9.51. If you buy this business for its dividend, you should have an idea of whether Kearny Financial's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

View our latest analysis for Kearny Financial

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Kearny Financial is paying out an acceptable 62% of its profit, a common payout level among most companies.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Kearny Financial has grown its earnings rapidly, up 27% a year for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Kearny Financial has increased its dividend at approximately 12% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Should investors buy Kearny Financial for the upcoming dividend? Earnings per share are growing at an attractive rate, and Kearny Financial is paying out a bit over half its profits. In summary, Kearny Financial appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

While it's tempting to invest in Kearny Financial for the dividends alone, you should always be mindful of the risks involved. In terms of investment risks, we've identified 1 warning sign with Kearny Financial and understanding them should be part of your investment process.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Advertisement