Hingham Institution for Savings : HIFS-US: Dividend Analysis : July 10th, 2017 (record date) : By the numbers : August 21, 2017

Our analysis is based on comparing Hingham Institution for Savings with the following peers – Western New England Bancorp, Inc., Berkshire Hills Bancorp, Inc., Northwest Bancshares, Inc., Meridian Bancorp Inc, BSB Bancorp, Inc., Wellesley Bancorp, Inc., United Financial Bancorp Inc and Brookline Bancorp, Inc. (WNEB-US, BHLB-US, NWBI-US, EBSB-US, BLMT-US, WEBK-US, UBNK-US and BRKL-US).

Hingham Institution for Savings’s dividend yield is 0.90 percent and its dividend payout is 11.19 percent. This compares to a peer average dividend yield of 1.87 percent and a payout level of 35.69 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 42 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 June 30, 2017), HIFS-US paid a medium quality dividend, which represents a yield of 0.72% 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 4 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 2.41x, 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 June 30, 2017), HIFS-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 7.76x), investing cash flow (coverage of -56.51x), issuance cash flow (coverage of 68.87x) and twelve-month prior cash (coverage of 3.33x), for a total dividend coverage of 3.57x.

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 (%) 2.04 1.68 1.57 1.79 0.77 0.9
Dividend Payout (%) 20.8 16.88 10.54 12.86 11.39 11.19

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

Company Profile

Hingham Institution for Savings provides community banking services. Its primary deposit products include savings, checking and term certificate accounts, and primary lending products are residential and commercial mortgage, real estate, construction, home equity and consumer loans. The company offers online banking services, which include PCBANK24, business online, bill pay service and 24-hour banking. It provides financial services to individuals and small businesses in Boston and Southeastern Massachusetts. Hingham Institution for Savings was founded in 1834 and is headquartered in Hingham, MA.

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