Our analysis is based on comparing Flushing Financial Corp. with the following peers – Greene County Bancorp, Inc., Northfield Bancorp, Inc., Carver Bancorp Inc., Elmira Savings Bank, Lake Shore Bancorp, Inc., Northeast Community Bancorp, Inc. and Dime Community Bancshares, Inc. (GCBC-US, NFBK-US, CARV-US, ESBK-US, LSBK-US, NECB-US and DCOM-US).
Flushing Financial Corp.’s dividend yield is 3.23 percent and its dividend payout is 41.52 percent. This compares to a peer median dividend yield of 1.97 percent and a payout level of 43.24 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 42 out of a possible score of 100, lessens its attractiveness for dividend investors.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), FFIC-US paid a medium quality dividend, which represents a yield of 2.58% 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 4 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 2.92x, provides a moderate 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, 2017), FFIC-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 2.82x), investing cash flow (coverage of -12.37x), issuance cash flow (coverage of 11.15x) and twelve-month prior cash (coverage of 2.32x), for a total dividend coverage of 3.92x.
FFIC-US’s issuance cash flow includes outflows from net debt repayment (coverage of -8.18x) and net share buybacks (coverage of -0.17x). Thus, the total coverage including share buybacks is 4.08x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
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 (%)||3.35||2.5||3||2.98||2.34||3.23|
|Dividend Payout (%)||46.02||41.27||40.54||40.25||30.36||41.52|
A complete list of metrics and analysis is available on the company page.
Flushing Financial Corp. operates as a bank holding company for Flushing Savings Bank, which provides banking and financial services. Its principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in originations and purchases of multi-family residential properties, commercial business loans, commercial real estate mortgage loans, construction loans, small business administration loans and other small business loans, mortgage loan, U.S. government securities, corporate fixed-income securities and other marketable securities. The company was founded on May 9, 1994 and is headquartered in Lake Success, NY.
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