Our analysis is based on comparing The First Bancorp, Inc. (Maine) with the following peers – Bar Harbor Bankshares, Camden National Corporation, Webster Financial Corporation, Patriot National Bancorp, Inc., Boston Private Financial Holdings, Inc., Enterprise Bancorp, Inc., Salisbury Bancorp, Inc., Northeast Bancorp, Century Bancorp, Inc. Class A and Independent Bank Corp. (BHB-US, CAC-US, WBS-US, PNBK-US, BPFH-US, EBTC-US, SAL-US, NBN-US, CNBKA-US and INDB-US).
The First Bancorp, Inc. (Maine)’s dividend yield is 4.06 percent and its dividend payout is 54.82 percent. This compares to a peer median dividend yield of 2.28 percent and a payout level of 42.25 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 December 31, 2016), FNLC-US paid a medium quality dividend, which represents a yield of 3.55% 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 4 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 1.77x, 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 December 31, 2016), FNLC-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 2.13x), investing cash flow (coverage of -15.07x), issuance cash flow (coverage of 14.26x) and twelve-month prior cash (coverage of 1.46x), for a total dividend coverage of 2.77x.
FNLC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -5.97x) and net share buybacks (coverage of -0.14x). Thus, the total coverage including share buybacks is 2.91x, 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 (%)||5.12||4.66||4.58||4.25||2.75||4.06|
|Dividend Payout (%)||63.93||65.42||60.58||57.62||54.82||54.82|
A complete list of metrics and analysis is available on the company page.
First Bancorp, Inc. operates as a bank holding company. The company engages in providing financial services to individuals and companies. Its offers demand, time, and savings deposits, lending, automated teller machine processing and investment management and trust services. The company was founded on January 15, 1985 and is headquartered in Damariscotta, ME.
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