Brookline Bancorp, Inc. (NASDAQ:BRKL) will be paying a dividend of $0.135 on the 24th of May, resulting in a dividend yield of 6.5%. This is good news for investors as it will enhance their returns. Brookline Bancorp has a history of distributing dividends for over 10 years, indicating a commitment to sharing its earnings with shareholders.
Based on the company’s payout ratio of 58%, as calculated from its last earnings report, it appears that Brookline Bancorp can comfortably cover its dividend payments without straining its balance sheet. Looking ahead, the forecasted increase in EPS by 11.4% suggests that the future payout ratio of 56% is within a sustainable range.
Although the company has consistently paid dividends over the years, the growth rate has been relatively modest at 4.7% annually. Despite the stability of the dividend, there are concerns about the company’s declining earnings per share, which have fallen by approximately 3.3% per year over the past five years. This trend may hinder future dividend growth unless reversed.
Overall, while Brookline Bancorp’s dividend policy seems sustainable for now, the shrinking earnings raise some red flags. Investors should consider various factors beyond just dividend payments when evaluating the company. It’s worth noting that there is a warning sign for Brookline Bancorp that investors should be aware of. For more high-yielding dividend ideas, investors can explore a collection of strong dividend payers.
It’s important to remember that this article by Simply Wall St is based on historical data and analyst forecasts, and is not intended to be financial advice. Investors should conduct their own research and consider their individual financial circumstances before making any investment decisions.