Our analysis is based on comparing Guaranty Federal Bancshares, Inc. with the following peers – Landmark Bancorp, Inc., Great Southern Bancorp, Inc., Liberty Bancorp, Inc., NASB Financial, Inc., HMN Financial, Inc., Meta Financial Group, Inc., Southern Missouri Bancorp, Inc., Hawthorn Bancshares, Inc., Commerce Bancshares, Inc. and QCR Holdings, Inc. (LARK-US, GSBC-US, LBCP-US, NASB-US, HMNF-US, CASH-US, SMBC-US, HWBK-US, CBSH-US and QCRH-US).
Guaranty Federal Bancshares, Inc.’s dividend yield is 1.78 percent and its dividend payout is 27.74 percent. This compares to a peer median dividend yield of 1.68 percent and a payout level of 22.19 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), GFED-US paid a medium quality dividend, which represents a yield of 1.78% 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 1 was high quality, 2 were medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 2.22x, 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 June 30, 2017), GFED-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 4.54x), investing cash flow (coverage of -45.40x), issuance cash flow (coverage of 42.46x) and twelve-month prior cash (coverage of 2.52x), for a total dividend coverage of 3.22x.
GFED-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -84.21x) and net share buybacks (coverage of -0.23x). Thus, the total coverage including share buybacks is 3.45x, 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 (%)||3.97||2||1.48||1.3||1.52||1.78|
|Dividend Payout (%)||0||0||11.28||17.69||26.77||27.74|
A complete list of metrics and analysis is available on the company page.
Guaranty Federal Bancshares, Inc. operates as a bank holding company, which engages in the provision of financial and banking services. Its products include checking and savings accounts, deposits, personal and mortgage loans, business financing, auto loans, online and mobile banking, and online payment services. The company was founded in September 1997 and is headquartered in Springfield, MO.
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