An In-depth Look into TRCY's Dividend Performance and Sustainability
Tri City Bankshares Corp (TRCY, Financial) recently announced a dividend of $0.18 per share, payable on 2023-11-09, with the ex-dividend date set for 2023-10-27. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Tri City Bankshares Corps dividend performance and assess its sustainability.
What Does Tri City Bankshares Corp Do?
Tri City Bankshares Corp is a bank holding company. It provides consumer and commercial banking services to individuals and businesses. The services provided by the bank are loan facilities, credit card facilities, reverse mortgages, online banking services, business cards, savings facilities, and other services. It has one reportable segment community banking.
A Glimpse at Tri City Bankshares Corp's Dividend History
Tri City Bankshares Corp has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Tri City Bankshares Corp's Dividend Yield and Growth
As of today, Tri City Bankshares Corp currently has a 12-month trailing dividend yield of 5.78% and a 12-month forward dividend yield of 5.55%. This suggests an expectation of decrease dividend payments over the next 12 months.
Tri City Bankshares Corp's dividend yield of 5.78% is near a 10-year high and outperforms than 71.9 of global competitors in the Banks industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Tri City Bankshares Corp's annual dividend growth rate was 2.70%. Extended to a five-year horizon, this rate decreased to 1.90% per year. And over the past decade, Tri City Bankshares Corp's annual dividends per share growth rate stands at -9.00%.
Based on Tri City Bankshares Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Tri City Bankshares Corp stock as of today is approximately 6.35%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Tri City Bankshares Corp's dividend payout ratio is 0.00.
Growth Metrics: The Future Outlook
Revenue is the lifeblood of any company, and Tri City Bankshares Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Tri City Bankshares Corp's revenue has increased by approximately 3.80% per year on average, a rate that underperforms than approximately 64.24% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Tri City Bankshares Corp's earnings increased by approximately 10.10% per year on average, a rate that underperforms than approximately 45.45% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.90%, which underperforms than approximately 41.94% of global competitors.
Next Steps
Given Tri City Bankshares Corp's consistent dividend payments, attractive yield, and viable payout ratio, the company presents a compelling case for income investors. However, its underperformance in growth metrics compared to global competitors warrants a cautious approach. Investors should continue to monitor the company's growth rates and profitability to ensure the sustainability of its dividends in the long run.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
