Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Citizens Financial Services, Inc. (NASDAQ:CZFS) is about to go ex-dividend in just two 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. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Citizens Financial Services' shares before the 14th of March to receive the dividend, which will be paid on the 29th of March.
The company's next dividend payment will be US$0.49 per share, on the back of last year when the company paid a total of US$1.96 to shareholders. Calculating the last year's worth of payments shows that Citizens Financial Services has a trailing yield of 4.6% on the current share price of US$42.845. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Citizens Financial Services has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Citizens Financial Services paid out a comfortable 48% of its profit last year.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Click here to see how much of its profit Citizens Financial Services paid out over the last 12 months.
NasdaqCM:CZFS Historic Dividend March 11th 2024
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Citizens Financial Services's earnings per share have fallen at approximately 5.0% a year over the previous five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Citizens Financial Services has lifted its dividend by approximately 7.5% a year on average.
To Sum It Up
Should investors buy Citizens Financial Services for the upcoming dividend? Citizens Financial Services's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. We're unconvinced on the company's merits, and think there might be better opportunities out there.
If you want to look further into Citizens Financial Services, it's worth knowing the risks this business faces. Our analysis shows 3 warning signs for Citizens Financial Services and you should be aware of these before buying any shares.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
配当金を増やすために配当金に頼る投資家がいる一方で、もしあなたがそのような配当金の追求者の一人なら、Citizens Financial Services, Inc. (NASDAQ:CZFS)があと2日で配当落ちすることに興味を持つかもしれません。 配当落ち日は、株主が配当金を受け取るために会社の簿記に存在するためのカットオフ日である、配当基準日の1営業日前になります。 配当落ち日は、決済プロセスには2つの完全な営業日が必要なため、重要です。したがって、その日を逃した場合、配当基準日に会社の簿記に表示されなくなります。 つまり、Citizens Financial Servicesの株式を3月14日以前に購入する必要があり、その配当金は3月29日に支払われます。
一部の投資家は、配当を利用して富を増やしています。もしあなたがそのような配当探求家の一人である場合、Citizens Financial Services, Inc. (NASDAQ:CZFS)があと2日で配当落ちすることになることを知ることに興味がある可能性があります。配当落ち日は、配当支払い対象の株主が同社の株式名簿に記載されるための期限である配当基準日の前営業日に設定されています。配当落ち日が重要な理由は、決済のプロセスが2営業日にわたるためです。つまり、あなたがその日を逃すと、配当基準日に同社の株式名簿に表示されません。つまり、Citizens Financial Servicesの株式を3月14日までに購入する必要があります。この時期に購入すれば、3月29日に配当が支払われます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。