Our analysis is based on comparing Westamerica Bancorp with the following peers – Sierra Bancorp, Cathay General Bancorp and Hanmi Financial Corporation (BSRR-US, CATY-US and HAFC-US).
Westamerica Bancorp’s dividend yield is 2.87 percent and its dividend payout is 67.53 percent. This compares to a peer median dividend yield of 2.48 percent and a payout level of 39.70 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 67 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), WABC-US paid a medium quality dividend, which represents a yield of 2.87% 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 2 were high quality, 2 were medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 11.58x, provides a substantial 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), WABC-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 1.94x), investing cash flow (coverage of -4.94x), issuance cash flow (coverage of 4.73x) and twelve-month prior cash (coverage of 11.80x), for a total dividend coverage of 14.70x.
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 (%)||3.54||2.68||3.15||3.28||2.45||2.87|
|Dividend Payout (%)||50.51||59.6||65.52||66.52||68.12||67.53|
A complete list of metrics and analysis is available on the company page.
Westamerica Bancorp operates as a bank holding company. It provides range of banking services to individual and corporate customers in Northern and Central California through its subsidiary bank, Westamerica Bank. The company was founded in 1972 and is headquartered in San Rafael, CA.
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