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MVB Financial (NASDAQ:MVBF) Could Be a Buy for Its Next Dividend
Readers who want to buy MVB Financial Corp. (NASDAQ:MVBF) to get their dividends will need to act soon as the shares are about to trade ex-dividend. The ex-dividend date is generally defined as one business day before the record date, which is the deadline by which you must be present on the company’s books as a shareholder to receive the dividend. It is important to be aware of the ex-dividend date because any trades in the shares must have been settled on or before the record date. Therefore, you will be able to purchase MVB Financial shares before May 31st to receive the dividend, which the company will pay on June 15th.
The company’s next dividend payment will be $0.17 per share, following last year when the company paid a total of $0.68 to shareholders. Based on the last year’s payments, MVB Financial has a trailing yield of 3.7% on the current stock price of $18.22. Dividends are an important source of income for many shareholders, but the health of the business is crucial to maintaining those dividends. That’s why we should always check if the dividend payments look sustainable and if the company is growing.
See our latest analysis for MVB Financial
If a company pays more in dividends than it earned, then the dividend could become unsustainable – not an ideal situation. That’s why it’s good to see MVB Financial paying out a modest 36% of its earnings.
Generally speaking, the lower a company’s payout ratios, the more resilient its dividends typically are.
Click Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
historic dividend
Have earnings and dividends increased?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they generally find it easier to grow dividends per share. If profits decline and the company is forced to cut its dividend, investors could see the value of their investment go up in smoke. Fortunately for readers, MVB Financial’s earnings per share have been growing 13% annually over the past five years.
The main way most investors evaluate a company’s dividend prospects is by checking the historical dividend growth rate. MVB Financial has delivered dividend growth of 24% per year on average over the past 10 years. It’s exciting to see that both earnings and dividends per share have grown rapidly in recent years.
Final conclusion
Does MVB Financial have what it takes to keep paying dividends? Typically, companies that grow quickly and pay out a small fraction of profits keep the profits to reinvest in the business. This strategy can add significant value to shareholders in the long term – as long as it is done without issuing too many new shares. Overall, MVB Financial looks like a promising dividend stock in this analysis and we think it would be worth investigating further.
The story continues
Curious to know what other investors think of MVB Financial? See what analysts are forecasting, with this visualization of your historical and future estimated earnings and cash flow.
If you’re looking for big dividend payers, we recommend Checking out our selection of top dividend stocks.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St has no position in any of the stocks mentioned.