Our analysis is based on comparing Access National Corp. with the following peers – TowneBank, Southern National Bancorp of Virginia, Inc., Village Bank and Trust Financial Corp., Bank of the James Financial Group, Inc., American National Bankshares Inc., Old Point Financial Corporation, Community Bankers Trust Corporation and Xenith Bankshares, Inc. (TOWN-US, SONA-US, VBFC-US, BOTJ-US, AMNB-US, OPOF-US, ESXB-US and XBKS-US).
Access National Corp.’s dividend yield is 2.22 percent and its dividend payout is 57.14 percent. This compares to a peer median dividend yield of 1.67 percent and a payout level of 48.24 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 58 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), ANCX-US paid a medium quality dividend, which represents a yield of 2.22% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were medium quality and 3 were low quality.
- The ending cash balance, with a dividend coverage of 14.34x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), ANCX-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.81x), investing cash flow (coverage of -31.23x), issuance cash flow (coverage of 38.11x) and twelve-month prior cash (coverage of 12.90x), for a total dividend coverage of 3.01x.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||7.34||7.41||2.94||4.57||2.15||2.22|
|Dividend Payout (%)||14.62||32.28||37.59||40.41||38.96||57.14|
A complete list of metrics and analysis is available on the company page.
Access National Corp. is a bank holding company, which engages in the provision of commercial banking, mortgage origination, credit, deposit and equipment leasing services. It operates through the following segments: Traditional Commercial Banking, Mortgage Banking Business, and Wealth Management Business. The Traditional Commercial Banking segment consist of interest earned on loans and investment securities and fees from deposit services. The Mortgage Banking Business segment offers interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income. The Wealth Management Business segment includes transactional fees charged to clients as well as fees for portfolio asset management. The company was founded on June 15, 2002 and is headquartered in Reston, VA.
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