Published on 20 May 2024 on Simply Wall St. · via Yahoo Finance

Should You Buy Northrim BanCorp, Inc. (NASDAQ:NRIM) For Its Upcoming Dividend?

It looks like Northrim BanCorp, Inc. (NASDAQ:NRIM) is about to go ex-dividend in the next 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Thus, you can purchase Northrim BanCorp's shares before the 6th of June in order to receive the dividend, which the company will pay on the 14th of June.

The company's next dividend payment will be US$0.61 per share. Last year, in total, the company distributed US$2.44 to shareholders. Based on the last year's worth of payments, Northrim BanCorp stock has a trailing yield of around 4.2% on the current share price of US$58.41. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Northrim BanCorp can afford its dividend, and if the dividend could grow.