Our analysis is based on comparing Camden National Corp. (Maine) with the following peers – Bar Harbor Bankshares, Boston Private Financial Holdings, Inc., Webster Financial Corporation, First Bancorp, Inc., Patriot National Bancorp, Inc., Enterprise Bancorp, Inc., Salisbury Bancorp, Inc., Northeast Bancorp, Washington Trust Bancorp, Inc. and Independent Bank Corp. (BHB-US, BPFH-US, WBS-US, FNLC-US, PNBK-US, EBTC-US, SAL-US, NBN-US, WASH-US and INDB-US).
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), CAC-US paid a low quality dividend, which represents a yield of 2.04% 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 6.96x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to June 30, 2017), CAC-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 4.17x), investing cash flow (coverage of -12.33x), issuance cash flow (coverage of 8.90x) and twelve-month prior cash (coverage of 7.22x), for a total dividend coverage of 7.96x.
CAC-US’s issuance cash flow includes outflows from net debt repayment (coverage of -7.17x) and net share buybacks (coverage of -0.00x). Thus, the total coverage including share buybacks is 7.96x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
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 (%)||2.96||2.56||2.73||1.45||1.8||2.11|
|Dividend Payout (%)||32.79||36.36||33.84||69.37||32.3||36.17|
A complete list of metrics and analysis is available on the company page.
Camden National Corp. operates as a bank holding company for Camden National Bank. The firm engages in the provision of financial services to individuals and companies. Its services includes lending, checking, savings, and time deposits; cash management, brokerage, wealth management, and trust. The company was founded in 1984 and is headquartered in Camden, ME.
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