GLBZ) For Its Upcoming Dividend

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Glen Burnie Bancorp (NASDAQ:GLBZ) stock is about to trade ex-dividend in 3 days. Investors can purchase shares before the 17th of July in order to be eligible for this dividend, which will be paid on the 31st of July.

Glen Burnie Bancorp’s next dividend payment will be US$0.10 per share, and in the last 12 months, the company paid a total of US$0.40 per share. Last year’s total dividend payments show that Glen Burnie Bancorp has a trailing yield of 4.6% on the current share price of $8.75. If you buy this business for its dividend, you should have an idea of whether Glen Burnie Bancorp’s dividend is reliable and sustainable. As a result, readers should always check whether Glen Burnie Bancorp has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Glen Burnie Bancorp

If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. Glen Burnie Bancorp paid out 65% of its earnings to investors last year, a normal payout level for most businesses.

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.

Click here to see how much of its profit Glen Burnie Bancorp paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. If earnings fall far enough, the company could be forced to cut its dividend. So we’re not too excited that Glen Burnie Bancorp’s earnings are down 2.5% a year over 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. Glen Burnie Bancorp’s dividend payments per share have declined at 1.1% per year on average over the past ten years, which is uninspiring.

To Sum It Up

Should investors buy Glen Burnie Bancorp for the upcoming dividend? We’re not overly enthused to see Glen Burnie Bancorp’s earnings in retreat at the same time as the company is paying out more than half of its earnings as dividends to shareholders. This is not an overtly appealing combination of characteristics, and we’re just not that interested in this company’s dividend.

With that being said, if you’re still considering Glen Burnie Bancorp as an investment, you’ll find it beneficial to know what risks this stock is facing. Our analysis shows 3 warning signs for Glen Burnie Bancorp that we strongly recommend you have a look at before investing in the company.

We wouldn’t recommend just buying the first dividend stock you see, though. Here’s a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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