Why It Might Not Make Sense To Buy Riverview Bancorp, Inc. (NASDAQ:RVSB) For Its Upcoming Dividend – Simply Wall St

Investors may want to think twice before buying Riverview Bancorp, Inc. (NASDAQ:RVSB) for its upcoming dividend. While dividends can be a great source of passive income for investors, it’s important to consider the overall health and performance of the company before making an investment decision.

Riverview Bancorp, Inc. may not be the best choice for dividend-seeking investors due to its inconsistent dividend history. The company’s dividend payments have fluctuated over the years, which can be concerning for investors looking for stable and reliable income.

Additionally, Riverview Bancorp, Inc.’s financial performance may not support sustainable dividend payments. The company’s earnings and revenue growth have been relatively flat in recent years, which could impact its ability to continue paying dividends at the same level in the future.

Investors should also consider the company’s dividend payout ratio, which measures the percentage of earnings that are paid out as dividends. A high dividend payout ratio may indicate that the company is using a large portion of its earnings to pay dividends, which could be unsustainable in the long run.

Overall, while dividends can be an attractive feature for investors, it’s important to thoroughly research and evaluate the company’s financial health and performance before making an investment solely for its dividend payments.