Bancorp of New Jersey, Inc. : BKJ-US: Dividend Analysis : September 23rd, 2016 (record date) : By the numbers : October 3, 2016

Our analysis is based on comparing Bancorp of New Jersey, Inc. with the following peers – Parke Bancorp, Inc., Sun Bancorp, Inc., Stewardship Financial Corporation, Two River Bancorp, Sussex Bancorp, Lakeland Bancorp, Inc., Unity Bancorp, Inc., Valley National Bancorp and Brunswick Bancorp (PKBK-US, SNBC-US, SSFN-US, TRCB-US, SBBX-US, LBAI-US, UNTY-US, VLY-US and BRBW-US).

Bancorp of New Jersey, Inc.’s dividend yield is 2.11 percent and its dividend payout is 31.58 percent. This compares to a peer median dividend yield of 1.27 percent and a payout level of 15.46 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 42 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2016), BKJ-US paid a medium quality dividend, which represents a yield of 2.11% 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 2.65x, 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, 2016), BKJ-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 3.83x), investing cash flow (coverage of -3.64x), issuance cash flow (coverage of 9.29x) and twelve-month prior cash (coverage of 1.34x), for a total dividend coverage of 3.65x.

BKJ-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -4.27x).

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 4.21 3.43 1.77 2.1 2.16 2.11
Dividend Payout (%) 0 29.63 27.59 34.29 30.38 31.58

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

Company Profile

Bancorp of New Jersey, Inc. operates as a bank holding company. Its primary business is ownership and supervision of the bank. The company is operating through its subsidiary, Bank of New Jersey which conducts a traditional commercial banking business, accepting deposits from the general public, including individuals, businesses, non-profit organizations, and governmental units. The bank makes commercial loans, consumer loans, and both residential and commercial real estate loans. In addition, it provides other customer services and makes investments in securities, as permitted by law. The company was founded in November 2006 and is headquartered in Fort Lee, NJ.

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