In This Article:
First Commonwealth Financial Corporation (NYSE:FCF) has announced that it will pay a dividend of $0.13 per share on the 21st of February. Based on this payment, the dividend yield will be 3.1%, which is fairly typical for the industry.
View our latest analysis for First Commonwealth Financial
First Commonwealth Financial's Earnings Will Easily Cover The Distributions
While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.
First Commonwealth Financial 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 First Commonwealth Financial's payout ratio of 37% is a good sign as this means that earnings decently cover dividends.
Looking forward, EPS is forecast to rise by 25.1% over the next 3 years. Analysts forecast the future payout ratio could be 35% over the same time horizon, which is a number we think the company can maintain.
First Commonwealth Financial Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the annual payment back then was $0.28, compared to the most recent full-year payment of $0.52. This works out to be a compound annual growth rate (CAGR) of approximately 6.4% a year over that time. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.
The Dividend Has Growth Potential
Investors could be attracted to the stock based on the quality of its payment history. First Commonwealth Financial has seen EPS rising for the last five years, at 5.6% per annum. First Commonwealth Financial definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
First Commonwealth Financial Looks Like A Great Dividend Stock
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for First Commonwealth Financial for free with public analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of 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.