Our analysis is based on comparing Cambridge Bancorp with the following peers – Parke Bancorp, Inc., Stock Yards Bancorp, Inc., Macatawa Bank Corporation, Chemung Financial Corporation, Huntington Bancshares Incorporated, Great Southern Bancorp, Inc., Union Bankshares, Inc., MainSource Financial Group, Inc., Shore Bancshares, Inc. and United Bancorp, Inc. (PKBK-US, SYBT-US, MCBC-US, CHMG-US, HBAN-US, GSBC-US, UNB-US, MSFG-US, SHBI-US and UBCP-US).
Cambridge Bancorp’s dividend yield is 3.32 percent and its dividend payout is 42.93 percent. This compares to a peer median dividend yield of 2.01 percent and a payout level of 40.22 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 March 31, 2017), CATC-US paid a low quality dividend, which represents a yield of 2.66% 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 4 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 3.72x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2017), CATC-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 3.17x), investing cash flow (coverage of -12.76x), issuance cash flow (coverage of 8.08x) and twelve-month prior cash (coverage of 6.24x), for a total dividend coverage of 4.72x.
CATC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.02x).
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 Yield (%)||4.09||3.97||3.6||3.79||2.95||3.32|
|Dividend Payout (%)||43.48||43.92||44.44||45.8||44.34||42.93|
A complete list of metrics and analysis is available on the company page.
Cambridge Bancorp is a bank holding company, which engages in commercial and consumer banking services. It operates through the Cambridge Trust Co. subsidiary. The bank is in the business of attracting deposits from the public and investing those deposits in various types of loans, including residential and commercial real estate, and commercial and consumer loans. It also invests its deposits and borrowed funds in investment securities. The company was founded in 1983 and is headquartered in Cambridge, MA.
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