Exploring the Dividend Potential of ConnectOne Bancorp (CNOB)
Dividends are one of the most attractive benefits of being a shareholder. They provide a steady stream of passive income, which can help investors meet their financial goals. However, finding a great dividend stock is no easy task. In this article, we’ll take a closer look at ConnectOne Bancorp (CNOB) and its dividend potential.
About ConnectOne Bancorp
ConnectOne Bancorp is a New Jersey-based financial services company that provides commercial banking and related financial services to businesses, professionals, and individuals. The company operates through its subsidiary, ConnectOne Bank, which has a network of 22 full-service branches and 3 loan production offices in New Jersey and New York.
Dividend History
ConnectOne Bancorp has a long history of paying dividends to its shareholders. The company has increased its dividend for the past 11 consecutive years, which is a strong indication of its financial health and commitment to its shareholders.
Financial Performance
ConnectOne Bancorp’s financial performance has been impressive in recent years. The company reported net income of $35.9 million for the third quarter of 2021, up from $27.7 million in the same period last year. This represents a year-over-year increase of 31.1%. The company’s return on assets (ROA) and return on equity (ROE) also improved, coming in at 1.12% and 10.62%, respectively.
Dividend Yield and Payout Ratio
As of now, ConnectOne Bancorp’s dividend yield is 1.67%. This is above the average yield for the S&P 500, which is currently around 1.4%. The company’s dividend payout ratio is 27.6%, which is considered sustainable and leaves room for future growth.
Economic Impact
For individuals, investing in dividend stocks like ConnectOne Bancorp can provide a steady source of passive income. This income can be used to fund daily expenses, save for retirement, or reinvested to grow the investment portfolio. For the economy, dividend payments can help stimulate economic growth by providing income to investors, who in turn can spend the money on goods and services.
Global Impact
On a global scale, the dividend payments from companies like ConnectOne Bancorp can have a significant impact. According to a report by Janus Henderson, dividends paid by companies worldwide are expected to reach $1.7 trillion in 2021, up from $1.4 trillion in 2020. This growth is driven by the recovery of the global economy from the COVID-19 pandemic and the increasing focus on shareholder returns.
Conclusion
ConnectOne Bancorp’s long history of increasing dividends, strong financial performance, and sustainable payout ratio make it an attractive option for income-seeking investors. Additionally, the economic and global impact of dividend payments cannot be ignored. As the world continues to recover from the COVID-19 pandemic, the importance of dividend-paying stocks like ConnectOne Bancorp is likely to grow.
- ConnectOne Bancorp is a New Jersey-based financial services company that has increased its dividend for the past 11 consecutive years.
- The company reported net income of $35.9 million for the third quarter of 2021, up from $27.7 million in the same period last year.
- ConnectOne Bancorp’s dividend yield is 1.67%, above the average yield for the S&P 500.
- The company’s dividend payout ratio is 27.6%, which is considered sustainable and leaves room for future growth.
- Dividend payments can help stimulate economic growth by providing income to investors, who in turn can spend the money on goods and services.
- Dividends paid by companies worldwide are expected to reach $1.7 trillion in 2021, up from $1.4 trillion in 2020.
