Benchmark Bankshares, Inc. (Virginia) : BMBN-US: Dividend Analysis : July 03rd, 2017 (record date) : By the numbers : August 17, 2017

Our analysis is based on comparing Benchmark Bankshares, Inc. (Virginia) with the following peers – WashingtonFirst Bankshares, Inc., United Bankshares, Inc., Bryn Mawr Bank Corporation, First Bancorp, Union Bankshares Corporation, University Bancorp, Inc., CNB Financial Corporation and Chemical Financial Corporation (WFBI-US, UBSI-US, BMTC-US, FBNC-US, UBSH-US, UNIB-US, CCNE-US and CHFC-US).

Benchmark Bankshares, Inc. (Virginia)’s dividend yield is 2.45 percent and its dividend payout is 32.06 percent. This compares to a peer median dividend yield of 2.38 percent and a payout level of 39.15 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 50 out of a possible score of 100, lessens its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), BMBN-US paid a low quality dividend, which represents a yield of 2.45% 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 5.56x, provides a substantial 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), BMBN-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 3.55x), investing cash flow (coverage of -16.47x), issuance cash flow (coverage of 13.72x) and twelve-month prior cash (coverage of 5.93x), for a total dividend coverage of 7.88x.

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 2003-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 2.78 3.01 2.8 2.97 2.33 2.45
Dividend Payout (%) 35.31 28.22 28.33 30.08 32.54 32.06

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

Company Profile

Benchmark Bankshares, Inc. operates as a bank holding company of Benchmark Community Bank, which provides a range of banking and financial services. It engages in business of obtaining deposits, including demand, savings and certificates, and originating residential, installment, and business loans. The company was founded on March 7, 1986 and is headquartered in Kenbridge, VA.


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