Our analysis is based on comparing Carolina Financial Corp. with the following peers – Citizens Bancorp of Virginia, Inc., Neffs Bancorp, Inc., National Bank Holdings Corporation Class A and Denmark Bancshares Inc (CZBT-US, NEFB-US, NBHC-US and DMKBA-US).
Carolina Financial Corp.’s dividend yield is 0.44 percent and its dividend payout is 8.29 percent. This compares to a peer average dividend yield of 2.07 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 50 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), CARO-US paid a low quality dividend, which represents a yield of 0.41% 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 8.17x, 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), CARO-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 1.42x), investing cash flow (coverage of -87.47x), issuance cash flow (coverage of 86.34x) and twelve-month prior cash (coverage of 7.05x), for a total dividend coverage of 9.17x.
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 (%)||N/A||0.63||0.75||0.36||0.38||0.44|
|Dividend Payout (%)||N/A||0.59||10||7.43||9.15||8.29|
A complete list of metrics and analysis is available on the company page.
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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