Carolina Financial Corp. : CARO-US: Dividend Analysis : December 14th, 2017 (record date) : By the numbers : December 14, 2017

Our analysis is based on comparing Carolina Financial Corp. with the following peers – Northfield Bancorp, Inc., Citizens First Corporation, Citizens Bancorp of Virginia, Inc. and Neffs Bancorp, Inc. (NFBK-US, CZFC-US, CZBT-US and NEFB-US).

Carolina Financial Corp.’s dividend yield is 0.57 percent and its dividend payout is 8.74 percent. This compares to a peer average dividend yield of 1.96 percent and a payout level of 26.30 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), CARO-US paid a medium quality dividend, which represents a yield of 0.44% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 2 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 6.63x, 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 September 30, 2017), CARO-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 2.66x), investing cash flow (coverage of -79.01x), issuance cash flow (coverage of 80.62x) and twelve-month prior cash (coverage of 4.30x), for a total dividend coverage of 7.63x.

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 (%) N/A 0.63 0.75 0.36 0.38 0.57
Dividend Payout (%) N/A 0.59 10 7.43 9.15 8.74

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

Company Profile

Carolina Financial Corp. operates as a holding company. It provides commercial banking services to individuals and small-to medium-sized businesses. The company operates through the following segments: Community Banking, Wholesale Mortgage Banking, and Other. The Community Banking segment provides traditional banking services offered through CresCom Bank. The Mortgage Banking segment provides mortgage loan origination and servicing offered through Crescent Mortgage. The Other segment provides managerial and operational support to the other business segments through Carolina Services and Carolina Financial. It offers various deposit products including checking accounts, savings accounts, money market accounts, time deposits, certificates of deposit and commercial lending. The company was founded by John D. Russ in February 1997 and is headquartered in Wilmington, DE.

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