Our analysis is based on comparing Unity Bancorp, Inc. with the following peers – Parke Bancorp, Inc., Peapack-Gladstone Financial Corporation, Bancorp of New Jersey, Inc., Sussex Bancorp, Two River Bancorp, Stewardship Financial Corporation, Lakeland Bancorp, Inc., Sun Bancorp, Inc. and Brunswick Bancorp (PKBK-US, PGC-US, BKJ-US, SBBX-US, TRCB-US, SSFN-US, LBAI-US, SNBC-US and BRBW-US).
Unity Bancorp, Inc.’s dividend yield is 1.12 percent and its dividend payout is 12.19 percent. This compares to a peer median dividend yield of 0.83 percent and a payout level of 13.77 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 58 out of a possible score of 100, lessens its attractiveness for dividend investors.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), UNTY-US paid a medium quality dividend, which represents a yield of 1.03% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 3 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 69.48x, 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 December 31, 2016), UNTY-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 6.73x), investing cash flow (coverage of -54.66x), issuance cash flow (coverage of 60.56x) and twelve-month prior cash (coverage of 57.85x), for a total dividend coverage of 70.48x.
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||0.32||0.96||1.05||0.93||1.12|
|Dividend Payout (%)||0||5.66||12.35||12.5||12.19||12.19|
A complete list of metrics and analysis is available on the company page.
Unity Bancorp, Inc. operates as a bank holding company which conducts a traditional and community-oriented commercial banking business and financial services to retail, corporate, and small business customers. The company accepts personal and business checking accounts, time deposits, money market accounts, and regular savings accounts, as well as demand and savings deposits. Its loan portfolio comprises commercial, small business administration, consumer, mortgage, home equity, and personal loans. Unity Bancorp was founded in 1994 and is headquartered in Clinton, NJ.
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