Our analysis is based on comparing MidWestOne Financial Group, Inc. with the following peers – West Bancorporation, Inc., Ames National Corporation, QCR Holdings, Inc., Hawthorn Bancshares, Inc., Great Southern Bancorp, Inc., UMB Financial Corporation, Enterprise Financial Services Corp, Associated Banc-Corp, Commerce Bancshares, Inc. and Guaranty Federal Bancshares, Inc. (WTBA-US, ATLO-US, QCRH-US, HWBK-US, GSBC-US, UMBF-US, EFSC-US, ASB-US, CBSH-US and GFED-US).
MidWestOne Financial Group, Inc.’s dividend yield is 1.97 percent and its dividend payout is 31.71 percent. This compares to a peer median dividend yield of 1.70 percent and a payout level of 29.11 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 58 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 Quality Overview
- Over the last twelve months (prior to June 30, 2017), MOFG-US paid a low quality dividend, which represents a yield of 1.94% 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 1 was high quality, 2 were medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 6.11x, 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), MOFG-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 4.71x), investing cash flow (coverage of -22.10x), issuance cash flow (coverage of 10.25x) and twelve-month prior cash (coverage of 4.41x), for a total dividend coverage of 7.11x.
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 Yield (%)||1.76||1.85||2.02||1.83||1.7||1.97|
|Dividend Payout (%)||18.37||22.94||26.41||24.79||35.96||31.71|
A complete list of metrics and analysis is available on the company page.
MidWestOne Financial Group, Inc. is a bank holding company. The company operates through the following subsidiaries: MidWestOne Bank and MidWestOne Insurance Services, Inc. MidWestOne Bank provides retail banking services, which include deposit products, including checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts and other time deposits. MidWestOne Insurance Services, Inc. provides personal and business insurance services in Iowa. It offers commercial and industrial, agricultural, real estate mortgage and consumer loans. The company’s other products and services include debit cards, automated teller machines, on-line banking, mobile banking, and safe deposit boxes. It also has a trust and investment department through which it offers a variety of trust and investment services, including administering estates, personal trusts, conservatorships, pension and profit-sharing funds and providing property management, farm management, custodial, financial planning, investment management and retail brokerage services. MidWestOne Financial Group was founded on March 14, 2008 and is headquartered in Iowa City, IA.
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