Our analysis is based on comparing South State Corp. with the following peers – Flushing Financial Corporation, Berkshire Hills Bancorp, Inc., First Busey Corporation and Glacier Bancorp, Inc. (FFIC-US, BHLB-US, BUSE-US and GBCI-US).
South State Corp.’s dividend yield is 1.61 percent and its dividend payout is 33.33 percent. This compares to a peer average dividend yield of 2.51 percent and a payout level of 45.05 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 June 30, 2017), SSB-US paid a low quality dividend, which represents a yield of 1.59% 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 high quality, 1 was medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 6.52x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to June 30, 2017), SSB-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 4.23x), investing cash flow (coverage of -12.62x), issuance cash flow (coverage of 7.94x) and twelve-month prior cash (coverage of 5.29x), for a total dividend coverage of 7.52x.
SSB-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -2.17x) and net share buybacks (coverage of -0.04x). Thus, the total coverage including share buybacks is 7.56x, 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 had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||1.51||0.95||1.22||1.36||1.38||1.61|
|Dividend Payout (%)||33.99||31.09||26.62||23.84||28.95||33.33|
A complete list of metrics and analysis is available on the company page.
South State Corp. is a bank holding company. The company through its subsidiary provides banking services; South State Bank serves the financial needs of local communities in South Carolina, Georgia and North Carolina. South State was founded on February 22, 1985 and is headquartered in Columbia, SC.
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