Community West Bancshares : CWBC-US: Dividend Analysis : November 14th, 2016 (record date) : By the numbers : January 11, 2017

Our analysis is based on comparing Community West Bancshares with the following peers – Heritage Commerce Corp, TriCo Bancshares, Heritage Oaks Bancorp, SVB Financial Group, Sierra Bancorp, East West Bancorp, Inc., Pacific Premier Bancorp, Inc., Cathay General Bancorp, Opus Bank and Central Valley Community Bancorp (HTBK-US, TCBK-US, HEOP-US, SIVB-US, BSRR-US, EWBC-US, PPBI-US, CATY-US, OPB-US and CVCY-US).

Community West Bancshares’s dividend yield is 1.42 percent and its dividend payout is 19.11 percent. This compares to a peer average dividend yield of 1.81 percent and a payout level of 31.58 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, 2016), CWBC-US paid a medium quality dividend, which represents a yield of 1.37% 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 1 was high quality and 2 were medium quality.
  • The ending cash balance, with a dividend coverage of 2.53x, provides a moderate 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, 2016), CWBC-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 6.43x), investing cash flow (coverage of -65.44x), issuance cash flow (coverage of 54.31x) and twelve-month prior cash (coverage of 1.84x), for a total dividend coverage of 3.53x.

CWBC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -4.25x) and net share buybacks (coverage of -6.32x). Thus, the total coverage including share buybacks is 9.85x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

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 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 11.73 0 0 0.61 1.58 1.42
Dividend Payout (%) 0 0 0 5.33 36.67 19.11

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

Company Profile

Community West Bancshares is a bank holding company, which provides full service banking through its wholly-owned subsidiary Community West Bank. Through the bank, it provides variety of financial products and services to customers including lending and deposit products. The company was founded on November 26, 1996 and is headquartered in Goleta, CA.


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