Minden Bancorp, Inc. : MDNB-US: Dividend Analysis : February 17th, 2017 (record date) : By the numbers : March 16, 2017

Our analysis is based on comparing Minden Bancorp, Inc. with the following peers – Home Bancorp, Inc., Jacksonville Bancorp, Inc., First Connecticut Bancorp, Inc., Southern Missouri Bancorp, Inc. and Hibernia Bancorp, Inc. (HBCP-US, JXSB-US, FBNK-US, SMBC-US and HIBE-US).

Minden Bancorp, Inc.’s dividend yield is 12.95 percent and its dividend payout is 18.09 percent. This compares to a peer median dividend yield of 1.32 percent and a payout level of 19 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 58 out of a possible score of 100, lessens its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to December 31, 2013), MDNB-US paid a medium quality dividend, which represents a yield of 1.07% 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 7.83x, 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 December 31, 2013), MDNB-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 9.77x), investing cash flow (coverage of -23.68x), issuance cash flow (coverage of 18.57x) and twelve-month prior cash (coverage of 10.72x), for a total dividend coverage of 8.83x.

MDNB-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.43x). Thus, the total coverage including share buybacks is 9.25x, 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 2009-12-31 2010-12-31 2011-12-31 2012-12-31 2013-12-31 Latest
Dividend Yield (%) N/A 1.23 1.29 2.57 1.49 12.95
Dividend Payout (%) 429.87 34.59 18.57 31.3 18.09 18.09

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

Company Profile

Minden Bancorp, Inc. operates as a holding company for MBL Bank. It accepts customer demand, savings, and time deposits and provides residential mortgages, commercial mortgages, and consumer and business loans to customers. The company was founded in 2001 and is headquartered in Minden, LA.

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