Richmond Mutual Bancorporation, Inc. (NASDAQ:RMBI) stock is about to trade ex-dividend in three days. The ex-dividend date is usually set to be one business day before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves a full business day. 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 Richmond Mutual Bancorporation's shares before the 5th of June to receive the dividend, which will be paid on the 18th of June.
The company's next dividend payment will be US$0.15 per share, and in the last 12 months, the company paid a total of US$0.60 per share. Last year's total dividend payments show that Richmond Mutual Bancorporation has a trailing yield of 4.5% on the current share price of US$13.24. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Richmond Mutual Bancorporation can afford its dividend, and if the dividend could grow.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Richmond Mutual Bancorporation is paying out an acceptable 64% of its profit, a common payout level among most companies.
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.
View our latest analysis for Richmond Mutual Bancorporation
Click here to see how much of its profit Richmond Mutual Bancorporation paid out over the last 12 months.
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Richmond Mutual Bancorporation's earnings have been skyrocketing, up 27% per annum for the past five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Richmond Mutual Bancorporation has delivered 25% dividend growth per year on average over the past five years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.