Our analysis is based on comparing Valley National Bancorp with the following peers – Sun Bancorp, Inc., Lakeland Bancorp, Inc., M&T Bank Corporation, Universal Electronics Inc., Peapack-Gladstone Financial Corporation, Two River Bancorp, Sussex Bancorp, Unity Bancorp, Inc., Bancorp of New Jersey, Inc. and Sharp Corporation (SNBC-US, LBAI-US, MTB-US, UEIC-US, PGC-US, TRCB-US, SBBX-US, UNTY-US, BKJ-US and SHCAF-US).
Valley National Bancorp’s dividend yield is 4.58 percent and its dividend payout is 65.67 percent. This compares to a peer median dividend yield of 0.80 percent and a payout level of 14.62 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 March 31, 2017), VLY-US paid a low quality dividend, which represents a yield of 3.66% 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 1 was high quality, 1 was medium quality and 3 were low quality.
- The ending cash balance, with a dividend coverage of 2.00x, provides a moderate 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 March 31, 2017), VLY-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 2.10x), investing cash flow (coverage of -15.34x), issuance cash flow (coverage of 13.00x) and twelve-month prior cash (coverage of 2.15x), for a total dividend coverage of 3.00x.
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 (%)||6.82||6.4||3.91||4.09||3.64||4.58|
|Dividend Payout (%)||90.41||90.53||78.57||104.76||69.84||65.67|
A complete list of metrics and analysis is available on the company page.
Valley National Bancorp is a bank holding company, which engages in the provision of retail and commercial banking services. It operates through the following segments: Consumer Lending; Commercial Lending; Investment Management; and Corporate and other adjustments. The Consumer Lending segment consists of residential mortgage loans, automobile loans and home equity loans, as well as wealth management services including trust, asset management, insurance services, and asset-based lending support. The Commercial Lending segment refers to the floating rate and adjustable rate commercial and industrial loans as well as fixed rate owner occupied and commercial real estate loans. The Investment Management segment is the investments in various types of securities and interest-bearing deposits with other banks which focuses on fixed rate securities, federal funds sold and interest-bearing deposits with banks. The Corporate and Other Adjustments segment relates to income and expense items not directly attributable to a specific segment. The company was founded in 1983 and is headquartered in Wayne, NJ.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.