Our analysis is based on comparing Oritani Financial Corp. with the following peers – OceanFirst Financial Corp., Kearny Financial Corp., Provident Financial Services, Inc., New York Community Bancorp, Inc., Magyar Bancorp, Inc. and MSB Financial Corp (OCFC-US, KRNY-US, PFS-US, NYCB-US, MGYR-US and MSBF-US).
Oritani Financial Corp.’s dividend yield is 7.14 percent and its dividend payout is 54.50 percent. This compares to a peer median dividend yield of 2.84 percent and a payout level of 51.39 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 33 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), ORIT-US paid a medium quality dividend, which represents a yield of 4.17% at the current price.
- Dividends paid during each of the last five years were all of medium quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2017), ORIT-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 0.56x), investing cash flow (coverage of -5.43x), issuance cash flow (coverage of 5.90x) and twelve-month prior cash (coverage of 0.19x), for a total dividend coverage of 1.60x.
ORIT-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.29x).
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 (%)||3.36||6.05||5.77||5.59||6.91||7.14|
|Dividend Payout (%)||70.42||67.93||74.47||63.64||57.85||54.5|
A complete list of metrics and analysis is available on the company page.
Oritani Financial Corp. engages in the business of holding the common stock of Oritani Bank. It also operates as a holding company of limited liability companies that own a variety of real estate investments. The company was founded in 1998 and is headquartered in Township of Washington, NJ.
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