Heritage Commerce Corp. : HTBK-US: Dividend Analysis : May 11th, 2017 (record date) : By the numbers : May 9, 2017

Our analysis is based on comparing Heritage Commerce Corp. with the following peers – Bank of Commerce Holdings, Cathay General Bancorp, CVB Financial Corp., Sierra Bancorp, TriCo Bancshares, Community West Bancshares, American River Bankshares, Pacific Premier Bancorp, Inc. and Bank of Marin Bancorp (BOCH-US, CATY-US, CVBF-US, BSRR-US, TCBK-US, CWBC-US, AMRB-US, PPBI-US and BMRC-US).

Heritage Commerce Corp.’s dividend yield is 1.89 percent and its dividend payout is 50.68 percent. This compares to a peer median dividend yield of 1.67 percent and a payout level of 30 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 42 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), HTBK-US paid a medium quality dividend, which represents a yield of 2.50% 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 2.26x, provides a moderate 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), HTBK-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 2.54x), investing cash flow (coverage of -12.77x), issuance cash flow (coverage of 21.55x) and twelve-month prior cash (coverage of 1.82x), for a total dividend coverage of 3.26x.

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 (%) 0 0.88 2.46 2.8 2.49 1.89
Dividend Payout (%) 0 16.67 42.86 66.67 50 50.68

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

Company Profile

Heritage Commerce Corp. is a bank holding company, which provides banking services through their subsidiary. Its operates under the segments Banking and Factoring. It offers commercial banking services to small and medium-sized businesses and their owners, managers and employees. It products include: commercial, real estate, construction and land development, consumer and small business administration guaranteed loans. The company was founded in 1997 and is headquartered in San Jose, CA.


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