Georgetown Bancorp, Inc. : GTWN-US: Dividend Analysis : May 08th, 2017 (record date) : By the numbers : May 4, 2017

Our analysis is based on comparing Georgetown Bancorp, Inc. with the following peers – United Community Financial Corp., Meridian Bancorp Inc, Home Financial Bancorp and Versailles Financial Corporation (UCFC-US, EBSB-US, HWEN-US and VERF-US).

Georgetown Bancorp, Inc.’s dividend yield is 0.77 percent and its dividend payout is 90.91 percent. This compares to a peer average dividend yield of 0.91 percent and a payout level of 31.98 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. Supporting this is the company’s average dividend quality score of 50 out of a possible score of 100, which points to some weakness in being able to sustain the higher payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), GTWN-US paid a low quality dividend, which represents a yield of 0.77% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 2 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 8.49x, 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), GTWN-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 3.63x), investing cash flow (coverage of -77.16x), issuance cash flow (coverage of 69.83x) and twelve-month prior cash (coverage of 7.33x), for a total dividend coverage of 24.50x.

GTWN-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -25.22x) and net share buybacks (coverage of -0.21x). Thus, the total coverage including share buybacks is 9.70x, 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 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 (%) 0 1.05 0.91 0.98 0.73 0.77
Dividend Payout (%) 0 39.02 19.71 21.51 179.55 90.91

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

Company Profile

Georgetown Bancorp, Inc. operates as a holding company for Georgetown Savings Bank. It primarily engages in attracting deposits from businesses and the general public and investing those deposits, together with borrowings and funds generated from operations, in commercial and multi-family real estate loans, one-to-four family investment property loans and business, one-to-four-family residential real estate loans, home equity loans and lines of credit and consumer loans, as well as investing in securities. The company was founded in March 2012 and is headquartered in Georgetown, MA.


The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website