Our analysis is based on comparing United Community Financial Corp. with the following peers – Wayne Savings Bancshares, Inc., First Defiance Financial Corp., FFD Financial Corporation, New York Community Bancorp, Inc., Wolverine Bancorp, Inc., ASB Financial Corp, TFS Financial Corporation and Central Federal Corporation (WAYN-US, FDEF-US, FFDF-US, NYCB-US, WBKC-US, ASBN-US, TFSL-US and CFBK-US).
United Community Financial Corp.’s dividend yield is 1.43 percent and its dividend payout is 29.44 percent. This compares to a peer average dividend yield of 2.98 percent and a payout level of 52.02 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), UCFC-US paid a medium quality dividend, which represents a yield of 1.32% 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 medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 7.39x, 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 June 30, 2017), UCFC-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 5.29x), investing cash flow (coverage of -25.04x), issuance cash flow (coverage of 22.63x) and twelve-month prior cash (coverage of 4.19x), for a total dividend coverage of 8.39x.
UCFC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -18.15x) and net share buybacks (coverage of -0.11x). Thus, the total coverage including share buybacks is 8.50x, 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 (%)||0||0||0.38||1.2||1.24||1.43|
|Dividend Payout (%)||0||0||2||20.59||27.5||29.44|
A complete list of metrics and analysis is available on the company page.
United Community Financial Corp. operates as a financial holding company, which provides retail and business banking products and services. The company’s lending activity include conventional residential real estate loans secured by real estate located in home savings primary market area. It provides commercial real estate, commercial and industrial loans, and various types of consumer loans, including home equity loans, loans secured by savings accounts, motor vehicles, boats and recreational vehicles and unsecured loans. The company offers various deposit products, including regular passbook savings accounts, demand deposits, individual retirement accounts, checking accounts, money market accounts and certificates of deposit. United Community Financial was founded in February 1998 and is headquartered in Youngstown, OH.
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