Sandy Spring Bancorp, Inc. : SASR-US: Dividend Analysis : November 08th, 2017 (record date) : By the numbers : November 13, 2017

Our analysis is based on comparing Sandy Spring Bancorp, Inc. with the following peers – Old Line Bancshares, Inc., Shore Bancshares, Inc., Bay Bancorp, Inc., Eagle Bancorp, Inc., Howard Bancorp, Inc., First United Corporation, F.N.B. Corporation, Glen Burnie Bancorp and Fulton Financial Corporation (OLBK-US, SHBI-US, BYBK-US, EGBN-US, HBMD-US, FUNC-US, FNB-US, GLBZ-US and FULT-US).

Sandy Spring Bancorp, Inc.’s dividend yield is 2.72 percent and its dividend payout is 43.15 percent. This compares to a peer median dividend yield of 2.63 percent and a payout level of 32.50 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), SASR-US paid a medium quality dividend, which represents a yield of 2.72% 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 medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 1.99x, provides a moderate 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 September 30, 2017), SASR-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 2.41x), investing cash flow (coverage of -20.93x), issuance cash flow (coverage of 19.68x) and twelve-month prior cash (coverage of 1.94x), for a total dividend coverage of 2.99x.

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 (%) 2.46 2.29 2.94 3.42 2.48 2.72
Dividend Payout (%) 32.43 36.16 50 48.91 49 43.15

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

Company Profile

Sandy Spring Bancorp, Inc. is a bank holding company for Sandy Spring Bank, which engages in the provision of commercial banking, retail banking, and trust services to individuals and businesses. It operates through the following segments: Community Banking, Insurance, and Investment Management. The Community Banking segment conducts its operations through Sandy Spring Bank and involves delivering financial products and services, including various loan and deposit products to both individuals and businesses. The Insurance segment includes operations through Sandy Spring Insurance Corp, a subsidiary of the bank, and offers annuities as an alternative to traditional deposit accounts. The Investment Management segment conducts its operations through West Financial Services, Inc., a subsidiary of the Bank. The company was founded in 1988 and is headquartered in Olney, MD.

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