Our analysis is based on comparing SI Financial Group, Inc. with the following peers – Berkshire Hills Bancorp, Inc., PB Bancorp, Inc., First Connecticut Bancorp, Inc., People’s United Financial, Inc., Wellesley Bancorp, Inc. and United Financial Bancorp Inc (BHLB-US, PBBI-US, FBNK-US, PBCT-US, WEBK-US and UBNK-US).
SI Financial Group, Inc.’s dividend yield is 1.13 percent and its dividend payout is 17.53 percent. This compares to a peer average dividend yield of 1.30 percent and a payout level of 44.75 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), SIFI-US paid a medium quality dividend, which represents a yield of 1.13% 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 9.65x, 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), SIFI-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 8.11x), investing cash flow (coverage of -19.93x), issuance cash flow (coverage of 29.98x) and twelve-month prior cash (coverage of 7.94x), for a total dividend coverage of 47.19x.
SIFI-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -8.91x) and net share buybacks (coverage of -0.06x). Thus, the total coverage including share buybacks is 10.71x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
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 (%)||1.01||0.8||1.02||1.15||1||1.13|
|Dividend Payout (%)||109.09||-150||33.33||44.44||16.84||17.53|
A complete list of metrics and analysis is available on the company page.
SI Financial Group, Inc. engages in providing banking services. Its services include savings, checking and deposit accounts, certificates of deposit, residential and commercial mortgage loans, commercial business loans and consumer loans. The company was founded on August 6, 2004 and is headquartered in Willimantic, CT.
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