Our analysis is based on comparing Kearny Financial Corp. with the following peers – OceanFirst Financial Corp., Oritani Financial Corp., Northfield Bancorp, Inc., Provident Financial Services, Inc., Magyar Bancorp, Inc. and MSB Financial Corp (OCFC-US, ORIT-US, NFBK-US, PFS-US, MGYR-US and MSBF-US).
Kearny Financial Corp.’s dividend yield is 1.51 percent and its dividend payout is 45.45 percent. This compares to a peer average dividend yield of 2.30 percent and a payout level of 50 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), KRNY-US paid a medium quality dividend, which represents a yield of 0.66% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 2 of these years — of these 1 was medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 9.44x, provides a substantial 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), KRNY-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 3.47x), investing cash flow (coverage of -53.56x), issuance cash flow (coverage of 36.49x) and twelve-month prior cash (coverage of 24.04x), for a total dividend coverage of 10.44x.
KRNY-US’s issuance cash flow includes outflows from net share buybacks (coverage of -15.13x). Thus, the total coverage including share buybacks is 25.57x, 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 (%)||0||0||0||0.62||0.66||1.51|
|Dividend Payout (%)||0||0||0||44.44||45.45||45.45|
A complete list of metrics and analysis is available on the company page.
Kearny Financial Corp. operates as a holding company. Its business includes the ownership and operation of the bank. The company is engaged in the business of attracting deposits from the general public in New Jersey. It uses deposits, together with other funds, to originate or purchase loans for its portfolio and invest in securities. The company offers both personal and business services. Kearny Financial was founded on September 2, 2014 and is headquartered in Fairfield, NJ.
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