We are always on the prowl for an undervalued, dividend growth stock in the community banking sector. The two of us love banks and enjoy diving into their financial statements to uncover these gems. In today’s dividend stock analysis, we will review a $1b bank headquartered in Monroeville, PA: Standard AVB Financial Corp, STND.
Our strategy is to invest in dividend growth stocks. So much of our emphasis on this website is finding companies that have demonstrated their ability to grow their dividend over time. If you don’t believe us, check out the three pillars of our infamous Dividend Stock Screener! But as I continue to monitor and review our portfolio, there is one stock that jumps off the page at me. That company is Schlumberger (SLB). No, it isn’t because the company hasn’t increased their dividend in several years. It is because I am asking myself a much more tragic question after reviewing the numbers closely. Is Schlumberger’s dividend safe?
In a recent article, Lanny broke down what a dividend is and highlighted what is so great about receiving a dividend. When I first started learning about dividend investing, there were a lot of articles and emphasis on assessing a company’s dividend payout ratio. So I thought I would take some time today, provide a definition for the payout ratio, show how to calculate the metric, and some other details/tricks of the trade that we have picked up over the years as we continue to invest in dividend growth stocks.