Ames National Corp. : ATLO-US: Dividend Analysis : August 01st, 2017 (record date) : By the numbers : August 30, 2017

Our analysis is based on comparing Ames National Corp. with the following peers – West Bancorporation, Inc., MidWestOne Financial Group, Inc., QCR Holdings, Inc., Great Southern Bancorp, Inc., Hawthorn Bancshares, Inc., Commerce Bancshares, Inc., UMB Financial Corporation, Enterprise Financial Services Corp, Landmark Bancorp, Inc. and Wells Fargo & Company (WTBA-US, MOFG-US, QCRH-US, GSBC-US, HWBK-US, CBSH-US, UMBF-US, EFSC-US, LARK-US and WFC-US).

Ames National Corp.’s dividend yield is 3.19 percent and its dividend payout is 53.75 percent. This compares to a peer median dividend yield of 1.83 percent and a payout level of 31.71 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 33 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), ATLO-US paid a low quality dividend, which represents a yield of 3.19% 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 3 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 2.47x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), ATLO-US paid a low 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 2.61x), investing cash flow (coverage of -6.87x), issuance cash flow (coverage of 5.17x) and twelve-month prior cash (coverage of 2.56x), for a total dividend coverage of 3.47x.

ATLO-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -2.59x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 2.65 2.81 2.7 3.21 2.52 3.19
Dividend Payout (%) 39.47 42.67 43.9 49.69 49.7 53.75

A complete list of metrics and analysis is available on the company page.

Company Profile

Ames National Corp. operates as a bank holding company. Its lending activities consist primarily of short-term and medium-term commercial and agricultural real estate loans, residential real estate loans, agricultural and business operating loans and lines of credit, equipment loans, vehicle loans, personal loans and lines of credit, home improvement loans and origination of mortgage loans for sale into the secondary market. The company also offers savings and time deposits, cash management services, merchant credit card processing, safe deposit boxes, wire transfers, direct deposit of payroll and social security checks and automated teller machine access. Ames National was founded on January 21, 1975 and is headquartered in Ames, IA.


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