Kentucky First Federal Bancorp (NASDAQ:KFFB) stock is about to trade ex-dividend in four days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. Therefore, if you purchase Kentucky First Federal Bancorp's shares on or after the 28th of April, you won't be eligible to receive the dividend, when it is paid on the 16th of May.
The company's next dividend payment will be US$0.10 per share, and in the last 12 months, the company paid a total of US$0.40 per share. Looking at the last 12 months of distributions, Kentucky First Federal Bancorp has a trailing yield of approximately 5.5% on its current stock price of $7.3062. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
See 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 paid out 148% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance.
When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut.
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 consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Kentucky First Federal Bancorp earnings per share are up 8.4% per annum over the last five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Kentucky First Federal Bancorp's dividend payments are effectively flat on where they were 10 years ago.
To Sum It Up
Is Kentucky First Federal Bancorp an attractive dividend stock, or better left on the shelf? While we like that its earnings are growing somewhat, we're not enamored that it's paying out 148% of last year's earnings. This is not an overtly appealing combination of characteristics, and we're just not that interested in this company's dividend.