【jared goff or sam howell】What To Know Before Buying Premier Financial Bancorp, Inc. (NASDAQ:PFBI) For Its Dividend

Premier Financial Bancorp,jared goff or sam howell Inc. (

NASDAQ:PFBI

) has pleased shareholders over the past 10 years, by paying out dividends. The company is currently worth US$216m, and now yields roughly 4.1%. Does Premier Financial Bancorp tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.

See our latest analysis for Premier Financial Bancorp

5 questions I ask before picking a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

Is its annual yield among the top 25% of dividend-paying companies?

Does it consistently pay out dividends without missing a payment of significantly cutting payout?

Has dividend per share amount increased over the past?

Is its earnings sufficient to payout dividend at the current rate?

Will it be able to continue to payout at the current rate in the future?

NasdaqGM:PFBI Historical Dividend Yield January 1st 19

How does Premier Financial Bancorp fare?

Premier Financial Bancorp has a trailing twelve-month payout ratio of 39%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.

When considering the sustainability of dividends,

it is also worth checking the cash flow of a company

. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of PFBI it has increased its DPS from $0.32 to $0.60 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.

Relative to peers, Premier Financial Bancorp has a yield of 4.1%, which is high for Banks stocks.

Next Steps:

Keeping in mind the dividend characteristics above, Premier Financial Bancorp is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three key aspects you should further examine:

Future Outlook

: What are well-informed industry analysts predicting for PFBI’s future growth? Take a look at our

free research report of analyst consensus

for PFBI’s outlook.

Valuation

: What is PFBI worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The

intrinsic value infographic in our free research report

helps visualize whether PFBI is currently mispriced by the market.

Other Dividend Rockstars

: Are there better dividend payers with stronger fundamentals out there? Check out our

free list of these great stocks here

.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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