Citizens & Northern Corp's Dividend Analysis
Delving into the Dividend Details of Citizens & Northern Corp (NASDAQ:CZNC)
Citizens & Northern Corp (NASDAQ:CZNC) recently announced a dividend of $0.28 per share, payable on 2024-02-09, with the ex-dividend date set for 2024-01-26. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Citizens & Northern Corps dividend performance and assess its sustainability.
What Does Citizens & Northern Corp Do?
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Citizens & Northern Corp is a community bank operating through its subsidiaries. It provides banking services, including deposit and loan products for personal and commercial customers. The bank also maintains a trust division that provides a wide range of financial services, such as 401(k) plans, retirement planning, estate planning, estate settlements and asset management.
A Glimpse at Citizens & Northern Corp's Dividend History
Citizens & Northern Corp has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis.
Citizens & Northern Corp has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Citizens & Northern Corp's Dividend Yield and Growth
As of today, Citizens & Northern Corp currently has a 12-month trailing dividend yield of 4.16% and a 12-month forward dividend yield of 5.55%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Citizens & Northern Corp's annual dividend growth rate was 1.20%. Extended to a five-year horizon, this rate increased to 1.30% per year. And over the past decade, Citizens & Northern Corp's annual dividends per share growth rate stands at 1.90%.
Based on Citizens & Northern Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Citizens & Northern Corp stock as of today is approximately 4.44%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Citizens & Northern Corp's dividend payout ratio is 0.54.