Hawthorn Bancshares, Inc. : HWBK-US: Dividend Analysis : June 15th, 2017 (record date) : By the numbers : June 16, 2017

Our analysis is based on comparing Hawthorn Bancshares, Inc. with the following peers – Enterprise Financial Services Corp, Great Southern Bancorp, Inc., Ames National Corporation, QCR Holdings, Inc., West Bancorporation, Inc., MidWestOne Financial Group, Inc., Guaranty Federal Bancshares, Inc., UMB Financial Corporation, Commerce Bancshares, Inc. and Landmark Bancorp, Inc. (EFSC-US, GSBC-US, ATLO-US, QCRH-US, WTBA-US, MOFG-US, GFED-US, UMBF-US, CBSH-US and LARK-US).

Hawthorn Bancshares, Inc.’s dividend yield is 1.16 percent and its dividend payout is 16.78 percent. This compares to a peer average dividend yield of 1.64 percent and a payout level of 29.67 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 50 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), HWBK-US paid a low quality dividend, which represents a yield of 1.01% 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 2 were medium quality and 3 were low quality.
  • The ending cash balance, with a dividend coverage of 14.41x, 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), HWBK-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 8.94x), investing cash flow (coverage of -95.21x), issuance cash flow (coverage of 70.41x) and twelve-month prior cash (coverage of 15.65x), for a total dividend coverage of 15.41x.

HWBK-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.45x). Thus, the total coverage including share buybacks is 15.86x, 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 (%) 2.59 1.6 1.33 1.23 1.1 1.16
Dividend Payout (%) 93.41 22.55 13.44 12.41 15.98 16.78

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

Company Profile

Hawthorn Bancshares, Inc. is a bank holding company, which through provides banking services to individual and corporate customers through its subsidiary Hawthorn Bank. It offers checking and savings accounts, internet banking, debit cards, certificates of deposit, brokerage services, personal loans, installment loans, trust services, credit related insurance, and safe deposit boxes. The company was founded on October 23, 1992 and is headquartered in Jefferson, MO.


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