West Bancorp, Inc. : WTBA-US: Dividend Analysis : May 10th, 2017 (record date) : By the numbers : May 9, 2017

Our analysis is based on comparing West Bancorp, Inc. with the following peers – Ames National Corporation, MidWestOne Financial Group, Inc., Great Southern Bancorp, Inc., QCR Holdings, Inc., Enterprise Financial Services Corp, UMB Financial Corporation, Commerce Bancshares, Inc., Hawthorn Bancshares, Inc., Guaranty Federal Bancshares, Inc. and Landmark Bancorp, Inc. (ATLO-US, MOFG-US, GSBC-US, QCRH-US, EFSC-US, UMBF-US, CBSH-US, HWBK-US, GFED-US and LARK-US).

West Bancorp, Inc.’s dividend yield is 3.64 percent and its dividend payout is 47.22 percent. This compares to a peer median dividend yield of 1.71 percent and a payout level of 29.67 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), WTBA-US paid a low quality dividend, which represents a yield of 2.88% 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 medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 3.19x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), WTBA-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 2.75x), investing cash flow (coverage of -11.96x), issuance cash flow (coverage of 8.92x) and twelve-month prior cash (coverage of 4.46x), for a total dividend coverage of 4.19x.

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 3.34 2.77 2.88 3.14 2.71 3.64
Dividend Payout (%) 39.13 41.18 39.2 45.93 47.18 47.22

A complete list of metrics and analysis is available on the company page.

Company Profile

West Bancorp, Inc. operates as a bank holding company, which through its subsidiary West Bank, provides commercial banking services. The bank provides full service community banking and trust services to customers located primarily in Iowa City, Iowa. It offers personal banking, business banking, corporate banking and Internet banking services. The company was founded in 1984 and is headquartered in West Des Moines, IA.


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