25-05-2025
Is It Worth Considering MVB Financial Corp. (NASDAQ:MVBF) For Its Upcoming Dividend?
Readers hoping to buy MVB Financial Corp. (NASDAQ:MVBF) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Thus, you can purchase MVB Financial's shares before the 30th of May in order to receive the dividend, which the company will pay on the 15th of June.
The company's next dividend payment will be US$0.17 per share. Last year, in total, the company distributed US$0.68 to shareholders. Looking at the last 12 months of distributions, MVB Financial has a trailing yield of approximately 3.6% on its current stock price of US$18.97. If you buy this business for its dividend, you should have an idea of whether MVB Financial's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.
We check all companies for important risks. See what we found for MVB Financial in our free report.
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. Fortunately MVB Financial's payout ratio is modest, at just 46% of profit.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Check out our latest analysis for MVB Financial
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. MVB Financial's earnings per share have fallen at approximately 7.9% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. MVB Financial has delivered an average of 24% per year annual increase in its dividend, based on the past 10 years of dividend payments.
Is MVB Financial worth buying for its dividend? MVB Financial'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. It doesn't appear an outstanding opportunity, but could be worth a closer look.
Curious what other investors think of MVB Financial? See what analysts are forecasting, with this visualisation of its historical and future estimated earnings and cash flow.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
