Our analysis is based on comparing Salisbury Bancorp, Inc. with the following peers – Boston Private Financial Holdings, Inc., Patriot National Bancorp, Inc., Washington Trust Bancorp, Inc., Century Bancorp, Inc. Class A, Independent Bank Corp., Enterprise Bancorp, Inc., Bankwell Financial Group, Inc., Webster Financial Corporation, Brookline Bancorp, Inc. and First Bancorp, Inc. (BPFH-US, PNBK-US, WASH-US, CNBKA-US, INDB-US, EBTC-US, BWFG-US, WBS-US, BRKL-US and FNLC-US).
Salisbury Bancorp, Inc.’s dividend yield is 2.46 percent and its dividend payout is 46.67 percent. This compares to a peer median dividend yield of 1.97 percent and a payout level of 41.39 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 42 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 September 30, 2017), SAL-US paid a low quality dividend, which represents a yield of 2.46% 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 1.76x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), SAL-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 3.35x), investing cash flow (coverage of -23.68x), issuance cash flow (coverage of 12.70x) and twelve-month prior cash (coverage of 4.21x), for a total dividend coverage of 3.21x.
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 (%)||4.72||4.23||2.58||3.34||2.98||2.46|
|Dividend Payout (%)||49.12||48.7||84.85||37.09||46.47||46.67|
A complete list of metrics and analysis is available on the company page.
Salisbury Bancorp, Inc. operates as a bank holding company, which engages in the provision of financial and commercial banking services for Salisbury Bank and Trust Co. Its products include money market and health savings accounts, mortgage loans, checking and savings accounts, retirement plans, business loans, investment management, trust and estate planning, online and mobile banking, and direct deposits. The company was founded on August 24,1998 and is headquartered in Lakeville, CT.
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