Our analysis is based on comparing DNB Financial Corp. (Pennsylvania) with the following peers – AmeriServ Financial, Inc., First Commonwealth Financial Corporation, Penns Woods Bancorp, Inc., Emclaire Financial Corp., F.N.B. Corporation, Royal Bancshares of Pennsylvania, Inc. Class B, Fulton Financial Corporation, ACNB Corporation, Peoples Financial Services Corp. and American Bank Incorporated (ASRV-US, FCF-US, PWOD-US, EMCF-US, FNB-US, RBPAB-US, FULT-US, ACNB-US, PFIS-US and AMBK-US).
DNB Financial Corp. (Pennsylvania)’s dividend yield is 1.01 percent and its dividend payout is 12.67 percent. This compares to a peer average dividend yield of 2.64 percent and a payout level of 45.31 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 September 30, 2017), DNBF-US paid a low quality dividend, which represents a yield of 0.81% 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 3 were medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 16.35x, 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, 2017), DNBF-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 20.04x), investing cash flow (coverage of 7.62x), issuance cash flow (coverage of -35.85x) and twelve-month prior cash (coverage of 25.54x), for a total dividend coverage of 17.35x.
DNBF-US’s issuance cash flow includes outflows from net debt repayment (coverage of -34.85x).
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 (%)||2.36||1.64||1.51||0.94||0.74||1.01|
|Dividend Payout (%)||11.17||20.59||16.87||15.64||18.06||12.67|
A complete list of metrics and analysis is available on the company page.
DNB Financial Corp. operates as a bank holding company, which engages in the provision of commercial and business banking services. The company services include accepting time, demand and savings deposits and making secured and unsecured commercial, real estate, and consumer loans. It also provides personal banking, business banking and wealth management services. DNB Financial was founded on October 28, 1982 and is headquartered in Downingtown, PA.
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