Shore Bancshares, Inc. : SHBI-US: Dividend Analysis : November 14th, 2016 (record date) : By the numbers : January 11, 2017

Our analysis is based on comparing Shore Bancshares, Inc. with the following peers – Sandy Spring Bancorp, Inc., First United Corporation, Bay Bancorp, Inc., Howard Bancorp, Inc., Old Line Bancshares, Inc., Glen Burnie Bancorp, PNC Financial Services Group, Inc., Wells Fargo & Company and M&T Bank Corporation (SASR-US, FUNC-US, BYBK-US, HBMD-US, OLBK-US, GLBZ-US, PNC-US, WFC-US and MTB-US).

Shore Bancshares, Inc.’s dividend yield is 0.90 percent and its dividend payout is 15.07 percent. This compares to a peer average dividend yield of 1.79 percent and a payout level of 33.02 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 September 30, 2016), SHBI-US paid a medium quality dividend, which represents a yield of 0.71% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 3 of these years — of these 2 were high quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 12.87x, 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 September 30, 2016), SHBI-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 12.86x), investing cash flow (coverage of -28.04x), issuance cash flow (coverage of 22.62x) and twelve-month prior cash (coverage of 12.51x), for a total dividend coverage of 13.87x.

SHBI-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.06x).

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 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 1.74 0.19 0 0 0.37 0.9
Dividend Payout (%) -81.82 -0.88 0 0 7.14 15.07

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

Company Profile

Shore Bancshares, Inc. operates as a bank holding company for the Talbot Bank of Easton and the Centreville National Bank of Maryland. The company operates through two segments: Community Banking and Insurance Products and Services. The Community Banking segment provides services to consumers and small businesses on the eastern shore of Maryland and in Delaware. Its activities include small business services, retail brokerage, trust services and consumer banking products and services. The Insurance Products and Services segment provides insurance products and services to businesses and consumers in the company’s market areas. Shore Bancshares was founded on March 15, 1996 and is headquartered in Easton, MD.

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