First Financial Bancorp (NASDAQ:FFBC) has announced it will distribute dividends on December 15 at $0.23 per share, boasting a 4.5% yield. The dividend payout is supported by a sustainable payout ratio of 32%, and even with an expected EPS decline of 27.4% over the next three years, the forecasted future payout ratio is anticipated to remain stable at around 40%.
The bank's dividend history has seen some fluctuations, with a downward trend from $1.10 per share in 2013 to $0.92 in recent times, equating to an average annual decrease of about 1.8%. Despite this historical instability, First Financial Bancorp's average annual EPS growth rate of 9.5% over the past five years, coupled with its strong cash generation capacity, suggests potential for future dividend increases.
InvestingPro Insights
As First Financial Bancorp (FFBC) continues its tradition of returning value to shareholders with its upcoming dividend distribution, InvestingPro data and tips offer a deeper dive into the company's financial health and market performance. With a market capitalization of $1.93 billion and a low P/E ratio of 7.11, FFBC presents a value investment opportunity, especially considering its accelerating revenue growth of nearly 26.81% over the last twelve months as of Q1 2023.
InvestingPro Tips highlight FFBC's consistent increase in earnings per share and a noteworthy track record of maintaining dividend payments for an impressive 41 consecutive years. The company's ability to consistently generate profits, as indicated by its profitable status over the last twelve months, supports the sustainability of its dividend payments. Furthermore, with analysts predicting profitability for the current year, investors may find additional confidence in the company's financial outlook.
For investors looking for more comprehensive insights, InvestingPro offers a range of additional tips, currently on a special Black Friday sale with discounts of up to 55%. Subscribers can access a total of 8 InvestingPro Tips for FFBC, which include detailed analyses on earnings revisions, P/E ratios in relation to earnings growth, and gross profit margins, to help make informed investment decisions.
The bank's commitment to maintaining a stable payout ratio, despite the forecasted EPS decline, is further substantiated by the InvestingPro Fair Value estimate of $29.69 USD, suggesting potential undervaluation at the current price. As First Financial Bancorp continues to navigate the financial landscape, these insights can be instrumental for investors evaluating the stock's potential as a dividend-paying investment.
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