Unveiling the Dividend Dynamics of Cashmere Valley Bank
Cashmere Valley Bank (CSHX, Financial) recently announced a dividend of $0.85 per share, payable on 2024-02-05, with the ex-dividend date set for 2024-01-25. 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 Cashmere Valley Banks dividend performance and assess its sustainability.
What Does Cashmere Valley Bank Do?
Cashmere Valley Bank is a state-chartered bank engaged in providing banking products and services. It mainly serves small and middle-market businesses and middle-income individuals in Washington. The company's lending and other banking activities are carried out in and around Chelan, Douglas, Kittitas, and Yakima counties and to a lesser degree, other areas of Western Washington. It offers checking, savings and business, investment and retirement savings, health savings, certificate of deposit, college savings accounts, loans, mortgages, electronic banking, contract servicing, investment and insurance services, and credit cards.
A Glimpse at Cashmere Valley Bank's Dividend History
Cashmere Valley Bank has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annual basis. Cashmere Valley Bank has increased its dividend each year since 2012. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 12 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cashmere Valley Bank's Dividend Yield and Growth
As of today, Cashmere Valley Bank currently has a 12-month trailing dividend yield of 3.23% and a 12-month forward dividend yield of 3.23%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Cashmere Valley Bank's annual dividend growth rate was 9.40%. Extended to a five-year horizon, this rate decreased to 9.30% per year. And over the past decade, Cashmere Valley Bank's annual dividends per share growth rate stands at an impressive 12.50%.
Based on Cashmere Valley Bank's dividend yield and five-year growth rate, the 5-year yield on cost of Cashmere Valley Bank stock as of today is approximately 5.04%.
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, Cashmere Valley Bank's dividend payout ratio is 0.22.
Cashmere Valley Bank's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cashmere Valley Bank's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Cashmere Valley Bank's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Cashmere Valley Bank's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cashmere Valley Bank's revenue has increased by approximately 7.70% per year on average, a rate that outperforms approximately 57.35% 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, Cashmere Valley Bank's earnings increased by approximately 5.50% per year on average, a rate that outperforms approximately 39.15% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 9.40%, which outperforms approximately 55.01% of global competitors.
Investor Considerations for Cashmere Valley Bank's Dividends
With a commendable track record of dividend payments and growth, Cashmere Valley Bank presents a case for a reliable income-generating investment. The bank's prudent payout ratio and fair profitability and growth metrics further reinforce the sustainability of its dividends. Investors looking for stable dividend income with growth potential might find Cashmere Valley Bank an attractive option. As the financial landscape evolves, it remains crucial for investors to monitor these factors to ensure the continued strength of their investment in Cashmere Valley Bank.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
