National Bank Holdings Corp. : NBHC-US: Dividend Analysis : August 25th, 2017 (record date) : By the numbers : September 20, 2017

Our analysis is based on comparing National Bank Holdings Corp. with the following peers – JPMorgan Chase & Co., CoBiz Financial Inc., Glacier Bancorp, Inc., Guaranty Bancorp, UMB Financial Corporation, Commerce Bancshares, Inc., Banco Bilbao Vizcaya Argentaria, S.A. Sponsored ADR, Howard Bancorp, Inc., Citigroup Inc and First Republic Bank (JPM-US, COBZ-US, GBCI-US, GBNK-US, UMBF-US, CBSH-US, BBVA-US, HBMD-US, C-PE and FRC-US).

National Bank Holdings Corp.’s dividend yield is 0.98 percent and its dividend payout is 21.71 percent. This compares to a peer average dividend yield of 1.55 percent and a payout level of 29.05 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 67 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), NBHC-US paid a medium quality dividend, which represents a yield of 0.86% 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 high quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 16.37x, 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 June 30, 2017), NBHC-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 0.64x), investing cash flow (coverage of -10.48x), issuance cash flow (coverage of 8.56x) and twelve-month prior cash (coverage of 18.65x), for a total dividend coverage of 17.37x.

NBHC-US’s issuance cash flow includes outflows from net share buybacks (coverage of -8.43x). Thus, the total coverage including share buybacks is 25.80x, 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 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0.26 1.05 1.13 1.03 0.76 0.98
Dividend Payout (%) N/A 142.86 90.91 142.86 27.85 21.71

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

Company Profile

National Bank Holdings Corp. is a bank holding company, which engages in the provision of banking products to both commercial and consumer clients. It offers small business loans, equipment loans, term loans, asset-backed loans, letters of credit, commercial lines of credit, commercial real estate loans, residential mortgage loans, home equity loans, and consumer loans. The company was founded by Thomas Metzger on June 16, 2009 and is headquartered in Greenwood Village, CO.


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