Understanding Tri City Bankshares Corp's Dividend Sustainability and Growth
Tri City Bankshares Corp (TRCY, Financial) recently announced a dividend of $0.18 per share, payable on 2024-02-08, with the ex-dividend date set for 2024-01-26. 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 delve into Tri City Bankshares Corp's dividend performance and assess its sustainability.
What Does Tri City Bankshares Corp Do?
Tri City Bankshares Corp is a bank holding company that offers a suite of consumer and commercial banking services to individuals and businesses. The services provided by the bank include loan facilities, credit card facilities, reverse mortgages, online banking services, business cards, savings facilities, and more. It operates primarily in the community banking segment.
A Glimpse at Tri City Bankshares Corp's Dividend History
Tri City Bankshares Corp has upheld a steady dividend payment track record since 2015, with dividends currently being distributed on a quarterly basis. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Tri City Bankshares Corp's Dividend Yield and Growth
As of today, Tri City Bankshares Corp boasts a 12-month trailing dividend yield of 5.37% and a 12-month forward dividend yield of 5.37%, indicating an expectation of consistent dividend payments over the next year.
With a dividend yield near a 10-year high and surpassing 74.35% of global competitors in the Banks industry, Tri City Bankshares Corp's dividend yield stands out as an appealing choice for income investors.
Over the past three years, Tri City Bankshares Corp's annual dividend growth rate was 2.70%, which decreased to 1.90% over a five-year period. The 10-year annual growth rate of dividends per share is at -9.00%. Based on the dividend yield and five-year growth rate, the 5-year yield on cost for Tri City Bankshares Corp stock is approximately 5.90%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of a dividend is often gauged by the dividend payout ratio. As of 2023-09-30, Tri City Bankshares Corp's dividend payout ratio is 0.00, suggesting that the company retains most of its earnings, which could be advantageous for future growth and stability.
Tri City Bankshares Corp's profitability rank is 5 out of 10, indicating moderate profitability. The company has consistently reported positive net income over the past decade, reinforcing its financial robustness.
Growth Metrics: The Future Outlook
Tri City Bankshares Corp's growth rank of 5 out of 10 suggests a fair growth outlook. While its revenue per share and 3-year revenue growth rate indicate a solid revenue model, the company's growth underperforms compared to a majority of its global competitors.
The 3-year EPS growth rate and the 5-year EBITDA growth rate also highlight the company's potential to grow earnings, which is crucial for maintaining dividends over the long term.
Concluding Insights
In conclusion, Tri City Bankshares Corp's dividend payments, growth rate, and payout ratio paint a picture of a company with a strong commitment to returning value to shareholders. While the dividend yield is attractive, the growth metrics suggest that Tri City Bankshares Corp faces challenges that may affect its ability to increase dividends in the future. Investors should consider these factors, alongside the company's moderate profitability and growth ranks, when evaluating the long-term sustainability of dividends. With these insights, value investors can make a more informed decision about the potential of Tri City Bankshares Corp as a dividend-paying investment.
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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.
