Have you been keeping an eye on CVB Financial Corp’s (NASDAQ:CVBF) upcoming dividend of $0.14 per share payable on the 22 January 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 04 January 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into CVB Financial’s latest financial data to analyse its dividend attributes. See our latest analysis for CVB Financial

5 questions I ask before picking a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• Is it the top 25% annual dividend yield payer?

• Has it paid dividend every year without dramatically reducing payout in the past?

• Has the amount of dividend per share grown over the past?

• Is it able to pay the current rate of dividends from its earnings?

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

How does CVB Financial fare?

CVB Financial has a payout ratio of 50.02%, which means that the dividend is covered by earnings. Going forward, analysts expect CVBF’s payout to remain around the same level at 47.13% of its earnings, which leads to a dividend yield of 2.47%. Furthermore, EPS should increase to $1.14. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. CVBF has increased its DPS from $0.34 to $0.56 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes CVBF a true dividend rockstar. Compared to its peers, CVB Financial has a yield of 2.38%, which is on the low-side for banks stocks.

What this means for you:

Are you a shareholder? With CVB Financial producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. However, depending on your current holdings, it may be beneficial exploring other dividend stocks to enhance your diversification, or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? Taking into account the dividend metrics, CVB Financial ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. As with all investments, 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. Whether or not you like the stock as a dividend play, it’s still worth checking the price tag. Can you buy CVB Financial for a great price? Take a look at our latest free analysis to find out!

To help readers see pass 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.