Exploring the Dividend Profile of a Stalwart Regional Bank
Calvin B. Taylor Bankshares Inc (TYCB, Financial) recently announced a dividend of $0.34 per share, payable on 2024-02-01, with the ex-dividend date set for 2024-01-19. 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 Calvin B. Taylor Bankshares Inc's dividend performance and assess its sustainability.
What Does Calvin B. Taylor Bankshares Inc Do?
Calvin B. Taylor Bankshares Inc is a part of the financial service domain. As a holding company for Calvin B. Taylor Banking Company, it offers a wide range of loan, deposit, and ancillary banking services through both physical and digital delivery channels to corporate and individual clients. The company's banking operations are primarily within the eastern coastal area of the Delmarva Peninsula, including Worcester County, Maryland, Sussex County, Delaware, and Accomack County, Virginia. The Bank also operates a Loan Production Office in Onley, Virginia.
A Glimpse at Calvin B. Taylor Bankshares Inc's Dividend History
Calvin B. Taylor Bankshares Inc has maintained a consistent dividend payment record since 2001, with distributions currently made on a quarterly basis. The company has demonstrated a commitment to increasing shareholder value by raising its dividend each year since 2009. This achievement has earned the stock the status of a dividend achiever, a prestigious recognition for companies with at least 15 consecutive years of dividend increases.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Calvin B. Taylor Bankshares Inc's Dividend Yield and Growth
As of today, Calvin B. Taylor Bankshares Inc boasts a 12-month trailing dividend yield of 3.05% and a 12-month forward dividend yield of 3.09%, indicating an expectation of increased dividend payments in the coming year.
Over the past three years, Calvin B. Taylor Bankshares Inc's annual dividend growth rate was 5.90%. This rate decreased slightly to 5.20% per year over a five-year span. Over the past decade, the annual dividends per share growth rate has been 2.80%. When considering the yield and five-year growth rate, the 5-year yield on cost for Calvin B. Taylor Bankshares Inc stock is approximately 3.93%.
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, which ensures the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Calvin B. Taylor Bankshares Inc's dividend payout ratio is 0.27.
Calvin B. Taylor Bankshares Inc's profitability rank is 5 out of 10 as of 2023-09-30, indicating fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its financial stability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must exhibit strong growth metrics. Calvin B. Taylor Bankshares Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of 9.60%, outperforming approximately 66.03% of global competitors.
The 3-year EPS growth rate shows Calvin B. Taylor Bankshares Inc's earnings have increased by about 12.60% per year on average, outperforming approximately 61.9% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 13.80% outperforms approximately 69.4% of global competitors.
Concluding Thoughts on Calvin B. Taylor Bankshares Inc's Dividend Profile
Calvin B. Taylor Bankshares Inc's dividend payments, growth rate, payout ratio, profitability, and growth metrics collectively paint a picture of a financially sound institution with a commitment to returning value to shareholders. The consistent increase in dividends, coupled with a prudent payout ratio and solid growth prospects, suggest that Calvin B. Taylor Bankshares Inc is poised to maintain its dividend achiever status. Investors seeking to diversify their portfolio with a stock that offers both stability and growth potential may find Calvin B. Taylor Bankshares Inc an attractive option. Will this regional bank continue its legacy of dividend reliability? Only time will tell, but the indicators seem promising.
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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.
