Our analysis is based on comparing QCR Holdings, Inc. with the following peers – Enterprise Financial Services Corp, West Bancorporation, Inc., MidWestOne Financial Group, Inc., Ames National Corporation, Great Southern Bancorp, Inc., Hawthorn Bancshares, Inc., Guaranty Federal Bancshares, Inc., UMB Financial Corporation, Commerce Bancshares, Inc. and Landmark Bancorp, Inc. (EFSC-US, WTBA-US, MOFG-US, ATLO-US, GSBC-US, HWBK-US, GFED-US, UMBF-US, CBSH-US and LARK-US).
QCR Holdings, Inc.’s dividend yield is 0.45 percent and its dividend payout is 7.36 percent. This compares to a peer average dividend yield of 1.64 percent and a payout level of 29.67 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), QCRH-US paid a medium quality dividend, which represents a yield of 0.35% 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 27.67x, 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 March 31, 2017), QCRH-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 22.20x), investing cash flow (coverage of -124.36x), issuance cash flow (coverage of 108.76x) and twelve-month prior cash (coverage of 22.07x), for a total dividend coverage of 28.67x.
QCRH-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -69.27x).
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 (%)||6.29||3.03||1.38||0.27||0.35||0.45|
|Dividend Payout (%)||4.32||3.85||4.65||4.97||7.37||7.36|
A complete list of metrics and analysis is available on the company page.
QCR Holdings, Inc. operates as a multi-bank holding company, which provides commercial banking services. Its principal business consists of deposits and investing those deposits in loans or leases and securities. It operates through the following segments: Commercial Banking, Wealth Management, and All Other. The Commercial Banking segment is geographically divided by markets into the secondary segments which are the three subsidiary banks wholly-owned by the company: Quad City Bank & Trust Co., Cedar Rapids Bank & Trust Co. and Rockford Bank & Trust Co. These subsidiaries offers similar products and services, but are managed separately due to different pricing, product demand, and consumer markets. The Wealth Management segment represents the trust and asset management and investment management and advisory services offered at the company’s three subsidiary banks. The All Other segment includes the operations of all other consolidated subsidiaries and defined operating segments that fall below the segment reporting thresholds. This segment includes the corporate operations of the parent company and the real estate holding operations. The company was founded by Douglas M. Hultquist and Michael A. Bauer in February 1993 and is headquartered in Moline, IL.
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