Enterprise Bancorp, Inc. : EBTC-US: Dividend Analysis : May 11th, 2017 (record date) : By the numbers : May 9, 2017

Our analysis is based on comparing Enterprise Bancorp, Inc. with the following peers – Century Bancorp, Inc. Class A, Independent Bank Corp., Merchants Bancshares, Inc., Boston Private Financial Holdings, Inc., Union Bankshares, Inc., Washington Trust Bancorp, Inc., Webster Financial Corporation, Salisbury Bancorp, Inc., Northeast Bancorp and Brookline Bancorp, Inc. (CNBKA-US, INDB-US, MBVT-US, BPFH-US, UNB-US, WASH-US, WBS-US, SAL-US, NBN-US and BRKL-US).

Enterprise Bancorp, Inc.’s dividend yield is 1.55 percent and its dividend payout is 29.66 percent. This compares to a peer average dividend yield of 1.93 percent and a payout level of 45.71 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), EBTC-US paid a low quality dividend, which represents a yield of 1.55% 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 5.81x, 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 March 31, 2017), EBTC-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 4.63x), investing cash flow (coverage of -44.29x), issuance cash flow (coverage of 40.49x) and twelve-month prior cash (coverage of 5.98x), for a total dividend coverage of 7.23x.

EBTC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -7.57x).

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 2.64 2.14 1.88 2.18 1.32 1.55
Dividend Payout (%) 34.38 33.82 33.33 32.26 30.59 29.66

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

Company Profile

Enterprise Bancorp, Inc. operates as a bank holding company. The company through its subsidiary, Enterprise Bank engages in the provision of gathering deposits. It offers commercial and consumer loan products, deposit products, and cash management services. The company also provides investment advisory and wealth management, trust and insurance services. Enterprise Bancorp was founded by George L. Duncan on February 29, 1996 and is headquartered in Lowell, MA.

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