Our analysis is based on comparing CIT Group, Inc. with the following peers – Regional Management Corp., SLM Corp and NewStar Financial, Inc. (RM-US, SLM-US and NEWS-US).
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2016), CIT-US paid a low quality dividend, which represents a yield of 1.38% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 3 of these years — of these 2 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 60.53x, 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 September 30, 2016), CIT-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 15.13x), investing cash flow (coverage of -3.90x), issuance cash flow (coverage of -16.91x) and twelve-month prior cash (coverage of 67.26x), for a total dividend coverage of 61.53x.
CIT-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -22.76x).
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 (%)||0||0||0.2||1.1||1.44||1.38|
|Dividend Payout (%)||0||0||2.99||11.18||10.58||27.68|
A complete list of metrics and analysis is available on the company page.
CIT Group, Inc. is a financial holding company, which provides financing, leasing and advisory services. It operates through the following segments: Transportation and International Finance; North America Banking; Legacy Consumer Mortgages; Non-Strategic Portfolios; and Corporate and Other. The Transportation and International Finance segment provides leasing and financing solution to operators and suppliers in the aviation and railcar industries. The North America Banking segment consists of the following divisions: Commercial Banking, Commercial Real Estate, Commercial Services, Equipment Finance, and Consumer Banking. The Legacy Consumer Mortgages segment includes portfolios of mortgage loans and reverse mortgage loans. The Non-Strategic Portfolio segment involves in portfolios that no longer considered strategic. The Corporate and Other segment offers investments and other unallocated items, such as certain amortization of intangible assets. The company was founded by Henry Ittelson in 1908 and is headquartered in New York, NY.
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