Our analysis is based on comparing American National Bankshares, Inc. (Virginia) with the following peers – TowneBank, National Bankshares, Inc., United Community Banks, Inc., Old Point Financial Corporation, Xenith Bankshares, Inc., Fauquier Bankshares, Inc. and Union Bankshares Corporation (TOWN-US, NKSH-US, UCBI-US, OPOF-US, XBKS-US, FBSS-US and UBSH-US).
American National Bankshares, Inc. (Virginia)’s dividend yield is 2.43 percent and its dividend payout is 50.53 percent. This compares to a peer median dividend yield of 2.40 percent and a payout level of 48.28 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 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 June 30, 2017), AMNB-US paid a medium quality dividend, which represents a yield of 2.43% 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 1 was high quality, 3 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 2.87x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to June 30, 2017), AMNB-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 2.23x), investing cash flow (coverage of -18.96x), issuance cash flow (coverage of 19.25x) and twelve-month prior cash (coverage of 2.61x), for a total dividend coverage of 3.87x.
AMNB-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.61x).
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 (%)||4.55||3.5||3.7||3.65||2.76||2.43|
|Dividend Payout (%)||45.1||46||56.79||53.76||50.79||50.53|
A complete list of metrics and analysis is available on the company page.
American National Bankshares, Inc. operates as a bank holding company, which engages in the provision of financial products and services. It includes commercial, mortgage, consumer banking, trust, investment services, and insurance. It operates through the following segments: Community Banking; Trust and Investment Services; and Others. The Community Banking segment involves making loans to and generating deposits from individuals and businesses. The Trust and Investment Services segment offers estate planning, trust account administration, investment management, and retail brokerage. The Others segment includes debt service on trust preferred securities and corporate items. The company was founded in 1984 and is headquartered in Danville, VA.
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