IF Bancorp (NASDAQ:IROQ) Will Pay A Dividend Of $0.20
IF Bancorp, Inc. (NASDAQ:IROQ) recently divulged its plan to distribute a dividend of $0.20 per share on October 13th. This payout implies a dividend yield of 2.6%, which falls short of the industry's average.
Take a look at our most recent examination for IF Bancorp.
Safe Dividend: IF Bancorp's Earnings Cover
Although the dividend yield may be somewhat small, it is crucial to consider the long-term viability of income stock payments.
IF Bancorp has a lengthy track record of providing dividends to its shareholders for a minimum of 10 years. It is important to note that the company's past performance may not guarantee future outcomes. However, the fact that IF Bancorp maintains a payout ratio of 25% indicates that it is capable of easily meeting its dividend obligations.
In the foreseeable future, there is a possibility of a 26.0% increase in earnings per share if the pattern of the past few years persists. Assuming that the dividend aligns with recent patterns, we anticipate a potential payout ratio of 23% in the upcoming year, which falls within a reasonably sustainable range.
IF Bancorp: A Proven Success
The company has a long-standing reputation of consistently distributing dividends. The payout has increased from $0.10 per year in 2013 to the latest annual payment of $0.40. This indicates that the company has shown a growth in its dividend payouts, averaging around 15% per year. Notably, the dividends have experienced a steady increase without any significant decreases during this period.
Dividend Set To Increase
The shareholders of the organization will undoubtedly be content to have been acquiring profits from dividends over a considerable period. It is indeed heartening to observe that IF Bancorp has been experiencing a 26% annual growth in their earnings per individual share for the previous five years. The earnings per share are increasing at a steady pace, and the proportion of profits distributed as dividends is minimal, which we believe is the perfect blend for a stock that pays dividends. Consequently, the company will likely find it effortless to increase the dividend amount in the forthcoming periods.
We Love IF Bancorp's Dividend
In general, we appreciate seeing the dividend remaining steady, and we believe IF Bancorp may even increase payouts going forward. The profits adequately cover the distributions, which are also being converted into cash. Considering all of these factors, it appears that this could be a promising chance for dividends.
The trends in the market show how much investors appreciate a reliable dividend policy compared to one that is uncertain. However, it's crucial for our readers to understand that dividend payments are not the sole aspect to consider when evaluating a company. Expanding on this discussion, we have discovered two red flags for IF Bancorp that investors should be aware of in the future. If you're interested in finding more companies with attractive dividend yields, we suggest exploring our assortment of dependable dividend providers.
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This blog post from Simply Wall St is of a general nature. We offer observations based on past information and predictions from analysts using an objective approach. Our articles should not be considered as financial guidance. They do not suggest buying or selling any stocks and do not consider your goals or financial condition. Our objective is to provide in-depth analysis based on fundamental data, with a focus on long-term perspectives. Please note that our analysis might not include the latest company announcements or subjective material with price implications. Simply Wall St does not have any investment in the mentioned stocks.
