Hilltop Holdings, Inc. : HTH-US: Dividend Analysis : May 15th, 2017 (record date) : By the numbers : May 11, 2017

Our analysis is based on comparing Hilltop Holdings, Inc. with the following peers – Flagstar Bancorp, Inc., Waterstone Financial, Inc., Travelers Companies, Inc., Erie Indemnity Company Class A, HomeStreet, Inc., Cincinnati Financial Corporation, Zurich Insurance Group AG Sponsored ADR, Arch Capital Group Ltd. and Allstate Corporation (FBC-US, WSBF-US, TRV-US, ERIE-US, HMST-US, CINF-US, ZURVY-US, ACGL-US and ALL-US).

Hilltop Holdings, Inc.’s dividend yield is 0.45 percent and its dividend payout is 8.11 percent. This compares to a peer average dividend yield of 2.62 percent and a payout level of 38.83 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 67 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), HTH-US paid a medium quality dividend, which represents a yield of 0.45% at the current price.
  • Only one dividend was paid over the last five years — it was also of medium quality.
  • The ending cash balance, with a dividend coverage of 61.39x, 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), HTH-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 -31.23x), investing cash flow (coverage of 13.35x), issuance cash flow (coverage of 22.57x) and twelve-month prior cash (coverage of 54.54x), for a total dividend coverage of 62.39x.

HTH-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.60x). Thus, the total coverage including share buybacks is 62.99x, 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’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 0 0 0.2 0.45
Dividend Payout (%) 0 0 0 0 4.05 8.11

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

Company Profile

Hilltop Holdings, Inc. engages in the provision of banking, mortgage origination, financial advisory, and insurance services. It operates through the following segments: Banking, Broker-Dealer, Mortgage Origination, and Insurance. The Banking segment includes business banking, personal banking, and wealth and investment management. The Broker-Dealer segment includes the following lines of business: public finance, capital markets, retail, structured finance, clearing services, and securities lending. The Mortgage Origination segment, through the Bank’s subsidiary, PrimeLending, handles loan processing, underwriting and closings in-house. The Insurance segment operates through NLC, which provides fire and limited homeowners insurance for low value dwellings and manufactured homes. The company was founded in July 1998 and is headquartered in Dallas, TX.

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