German American Bancorp, Inc. : GABC-US: Dividend Analysis : May 10th, 2017 (record date) : By the numbers : May 9, 2017

Our analysis is based on comparing German American Bancorp, Inc. with the following peers – Old National Bancorp, Horizon Bancorp, First Financial Corporation, 1st Source Corporation, Lakeland Financial Corporation, MainSource Financial Group, Inc., Associated Banc-Corp, MutualFirst Financial, Inc. and First Merchants Corporation (ONB-US, HBNC-US, THFF-US, SRCE-US, LKFN-US, MSFG-US, ASB-US, MFSF-US and FRME-US).

German American Bancorp, Inc.’s dividend yield is 1.53 percent and its dividend payout is 28.08 percent. This compares to a peer average dividend yield of 1.75 percent and a payout level of 33.19 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), GABC-US paid a medium quality dividend, which represents a yield of 1.50% 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 4.56x, 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), GABC-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 4.03x), investing cash flow (coverage of -6.83x), issuance cash flow (coverage of 5.01x) and twelve-month prior cash (coverage of 3.27x), for a total dividend coverage of 3.84x.

GABC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -6.12x).

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 2.58 2.05 2.09 2.04 1.32 1.53
Dividend Payout (%) 29.47 30.3 29.91 29.96 30.51 28.08

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

Company Profile

German American Bancorp, Inc. operates as financial services holding company. It owns a trust, brokerage, and financial planning subsidiary, German American Financial Advisors & Trust Co., and a full line property and casualty insurance agency German American Insurance, Inc. The company’s lines of business includes retail and commercial banking, mortgage banking, comprehensive financial planning, full service brokerage and trust administration, and personal & corporate insurance products. The company operates its business through the following segments: Core Banking, Trust & Investment Advisory Services and Insurance Operations. The Core Banking segment involves attracting deposits from the general public and using such funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in the company’s local markets. The Core Banking segment also involves the sale of residential mortgage loans in the secondary market. The Trust & Investment Advisory Services segment involves providing trust, investment advisory, and brokerage services to customers. The Insurance Operations segment offers personal and corporate property and casualty insurance products, primarily in the company’s banking subsidiary’s local markets. German American Bancorp was founded in 1982 and is headquartered in Jasper, IN


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