Investors seeking steady dividend income are turning their attention to Central Pacific Financial (NYSE:CPF) Corp. ahead of its upcoming ex-dividend date. The company has announced that shareholders must own stock by Tuesday, November 28, 2023, to be eligible for the next dividend cycle due to trade settlement times. Transactions made after Wednesday, November 29 will not qualify for the impending dividend distribution.
Shareholders on record by Thursday, December 14 will be recognized for the dividend payments. Subsequently, a dividend of $0.26 per share is slated for distribution on Friday, December 15, showcasing a sustainable payout ratio that reflects prudent financial management and the potential for long-term investment returns.
Central Pacific Financial has demonstrated robust performance with an annual earnings growth rate of approximately 12% over the past five years and a consistent increase in dividends at an average rate of 13% annually over the last decade. Importantly, only 44% of profits have been paid out as dividends, providing a safety margin and signaling management's commitment to reinvestment and growth over immediate payouts.
InvestingPro Insights
Investors considering Central Pacific Financial Corp. for its dividend prospects will find additional insights from InvestingPro particularly valuable. The company's commitment to dividend growth is highlighted by its track record of raising dividends for 6 consecutive years and maintaining payments for 11 consecutive years. This is complemented by a high shareholder yield and the fact that stockholders receive high returns on book equity, signaling a strong return on their investment.
From a financial health perspective, Central Pacific Financial boasts a high earnings quality with free cash flow exceeding net income, as reflected in the last twelve months as of Q3 2023. Despite a challenging environment with revenue declining at an accelerating rate, analysts predict the company will be profitable this year, a testament to its resilience.
InvestingPro Data metrics reveal a market capitalization of $472.44 million, a modest P/E ratio of 7.38, and a generous dividend yield of 5.95%, as of the end of November 2023. These figures, coupled with a strong return over the last month of 12.71%, may entice investors searching for value and income.
For those seeking a more in-depth analysis, InvestingPro offers additional tips that delve further into the company's financial nuances. Subscribers can access these insights, which are now available at a discount of up to 55% during the special Black Friday sale. With 11 more InvestingPro Tips listed on the platform, investors can equip themselves with a comprehensive understanding of Central Pacific Financial's investment potential.
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