BankFinancial Corp. : BFIN-US: Dividend Analysis : November 08th, 2017 (record date) : By the numbers : November 10, 2017

Our analysis is based on comparing BankFinancial Corp. with the following peers – First Defiance Financial Corp., First Capital, Inc., TFS Financial Corporation, IF Bancorp, Inc., ASB Financial Corp, Bank Mutual Corporation, United Community Bancorp and Jacksonville Bancorp, Inc. (FDEF-US, FCAP-US, TFSL-US, IROQ-US, ASBN-US, BKMU-US, UCBA-US and JXSB-US).

BankFinancial Corp.’s dividend yield is 1.84 percent and its dividend payout is 46.43 percent. This compares to a peer average dividend yield of 1.93 percent and a payout level of 37.44 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. Supporting this is the company’s average dividend quality score of 50 out of a possible score of 100, which points to some weakness in being able to sustain the higher payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), BFIN-US paid a medium quality dividend, which represents a yield of 1.71% 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, 2 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 2.18x, 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 September 30, 2017), BFIN-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 4.27x), investing cash flow (coverage of -19.73x), issuance cash flow (coverage of 21.63x) and twelve-month prior cash (coverage of 1.95x), for a total dividend coverage of 3.18x.

BFIN-US’s issuance cash flow includes outflows from net share buybacks (coverage of -1.99x). Thus, the total coverage including share buybacks is 5.17x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

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 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0.4 0.44 0.67 1.62 1.52 1.84
Dividend Payout (%) -2.21 25 3.98 36.36 53.85 46.43

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

Company Profile

BankFinancial Corp. operates as a bank holding company. Its products include checking and savings account, debit and credit cards, cash management, deposits, loans, online banking and payment, automated teller machines, safe deposit boxes, wealth management, and insurance services. The company was founded in 2004 and is headquartered in Burr Ridge, IL.

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