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 1.36 percent and its dividend payout is 29.94 percent. This compares to a peer average dividend yield of 2.15 percent and a payout level of 45.07 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 Quality Overview
- Over the last twelve months (prior to September 30, 2016), EBTC-US paid a medium quality dividend, which represents a yield of 1.35% 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 6.25x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2016), EBTC-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 3.47x), investing cash flow (coverage of -48.00x), issuance cash flow (coverage of 46.69x) and twelve-month prior cash (coverage of 6.39x), for a total dividend coverage of 7.25x.
EBTC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -4.28x).
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 Yield (%)||2.91||2.64||2.14||1.88||2.18||1.36|
|Dividend Payout (%)||36.21||34.38||33.82||33.33||32.26||29.94|
A complete list of metrics and analysis is available on the company page.
Enterprise Bancorp, Inc. operates as a bank holding company, which engages in the provision of gathering deposits. It offers commercial and consumer loan products, deposit products, and cash management services through its subsidiaries. It also includes investment advisory and wealth management, trust and insurance services. The company was founded by George L. Duncan on February 29, 1996 and is headquartered in Lowell, MA.
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