Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) will pay a dividend of $0.13 on the 21st of August. This means the annual payment is 4.1% of the current stock price, which is above the average for the industry.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that Northfield Bancorp (Staten Island NY)'s stock price has increased by 50% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

View our latest analysis for Northfield Bancorp (Staten Island NY)

Northfield Bancorp (Staten Island NY)'s Earnings Will Easily Cover The Distributions

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained.

Northfield Bancorp (Staten Island NY) has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Northfield Bancorp (Staten Island NY)'s payout ratio of 77% is a good sign as this means that earnings decently cover dividends.

Over the next year, EPS is forecast to expand by 24.5%. Assuming the dividend continues along the course it has been charting recently, our estimates show the future payout ratio being 69% which brings it into quite a comfortable range.

Northfield Bancorp (Staten Island NY) Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the dividend has gone from $0.24 total annually to $0.52. This implies that the company grew its distributions at a yearly rate of about 8.0% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

Northfield Bancorp (Staten Island NY) May Find It Hard To Grow The Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. Northfield Bancorp (Staten Island NY) has seen earnings per share falling at 3.1% per year over the last five years. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend.