Kentucky First Federal Bancorp (NASDAQ:KFFB) stock is about to trade ex-dividend in four days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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. Meaning, you will need to purchase Kentucky First Federal Bancorp's shares before the 29th of July to receive the dividend, which will be paid on the 25th of August.

The company's next dividend payment will be US$0.10 per share, on the back of last year when the company paid a total of US$0.40 to shareholders. Based on the last year's worth of payments, Kentucky First Federal Bancorp has a trailing yield of 5.7% on the current stock price of $7.0427. If you buy this business for its dividend, you should have an idea of whether Kentucky First Federal Bancorp's dividend is reliable and sustainable. As a result, readers should always check whether Kentucky First Federal Bancorp has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Kentucky First Federal Bancorp

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Kentucky First Federal Bancorp reported a loss last year, so it's not great to see that it has continued paying a dividend.

Click here to see how much of its profit Kentucky First Federal Bancorp paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Kentucky First Federal Bancorp reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Kentucky First Federal Bancorp's dividend payments are effectively flat on where they were 10 years ago. If a company's dividend stays flat while earnings are in decline, this is typically a sign that it is paying out a larger percentage of its earnings. This can become unsustainable if earnings fall far enough.

Remember, you can always get a snapshot of Kentucky First Federal Bancorp's financial health, by checking our visualisation of its financial health, here.

To Sum It Up

Has Kentucky First Federal Bancorp got what it takes to maintain its dividend payments? It's definitely not great to see that it paid a dividend despite reporting a loss last year. Worse, the general trend in its earnings looks negative in recent times. Kentucky First Federal Bancorp doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend.

Although, if you're still interested in Kentucky First Federal Bancorp and want to know more, you'll find it very useful to know what risks this stock faces. Be aware that Kentucky First Federal Bancorp is showing 3 warning signs in our investment analysis, and 1 of those is significant...

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

This article by Simply Wall St is general in nature. 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.

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