Live Oak Bancshares, Inc. : LOB-US: Dividend Analysis : November 13th, 2017 (record date) : By the numbers : November 14, 2017

Our analysis is based on comparing Live Oak Bancshares, Inc. with the following peers – Mid Penn Bancorp, Inc., MidWestOne Financial Group, Inc., MainStreet Bancshares, Inc. and Marquette National Corporation (MPB-US, MOFG-US, MNSB-US and MNAT-US).

Live Oak Bancshares, Inc.’s dividend yield is 0.51 percent and its dividend payout is 9.68 percent. This compares to a peer average dividend yield of 1.67 percent and a payout level of 25 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 September 30, 2017), LOB-US paid a low quality dividend, which represents a yield of 0.38% 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 3 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 79.91x, 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 September 30, 2017), LOB-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 -11.54x), investing cash flow (coverage of -236.39x), issuance cash flow (coverage of 219.96x) and twelve-month prior cash (coverage of 108.88x), for a total dividend coverage of 80.91x.

LOB-US’s issuance cash flow includes outflows from net debt repayment (coverage of -5.54x).

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 (%) N/A N/A N/A 0.56 0.43 0.51
Dividend Payout (%) N/A N/A N/A 3.08 17.95 9.68

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

Company Profile

Live Oak Bancshares, Inc. operates as a bank holding company for Live Oak Banking Co. It provides business loans to independent business people in niche industries. The company is focused on lending to small businesses and professionals in the veterinary practices, healthcare services, independent pharmacies, death care management, investment advisors, family entertainment centers and poultry agriculture regions. Live Oak Bancshares was founded by James S. Mahan III in December 2008 and is headquartered in Wilmington, NC.


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