Bank First Corp's Dividend Analysis
Insights into Bank First Corp's Upcoming Dividend and Financial Health
Bank First Corp (NASDAQ:BFC) recently announced a dividend of $0.3 per share, payable on 2024-01-10, with the ex-dividend date set for 2023-12-26. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Bank First Corp's dividend performance and assess its sustainability.
What Does Bank First Corp Do?
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Bank First Corp is a United States-based company engaged in providing financial services provides a full range of consumer and commercial financial institution services to individuals and businesses including retail and commercial banking in Wisconsin. These services include credit cards; secured and unsecured consumer, commercial, and real estate loans; demand, time, and savings deposits; and ATM processing. The Corporation also offers a full line of insurance services and checking accounts, savings accounts, money market accounts, cash management accounts, certificates of deposit, commercial and industrial loans, commercial real estate loans, construction and development loans, residential mortgages, consumer loans, credit cards, online banking, telephone banking, and mobile banking.
A Glimpse at Bank First Corp's Dividend History
Bank First Corp has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis.
Bank First Corp has increased its dividend each year since 2013. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 10 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bank First Corp's Dividend Yield and Growth
As of today, Bank First Corp currently has a 12-month trailing dividend yield of 1.23% and a 12-month forward dividend yield of 1.34%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Bank First Corp's annual dividend growth rate was 5.50%. Extended to a five-year horizon, this rate increased to 7.70% per year. And over the past decade, Bank First Corp's annual dividends per share growth rate stands at an impressive 11.50%.
Based on Bank First Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Bank First Corp stock as of today is approximately 1.78%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Bank First Corp's dividend payout ratio is 0.21.
Bank First Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bank First Corp's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Bank First Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Bank First Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bank First Corp's revenue has increased by approximately 9.10% per year on average, a rate that outperforms approximately 64.49% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Bank First Corp's earnings increased by approximately 12.80% per year on average, a rate that outperforms approximately 63.11% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 17.50%, which outperforms approximately 77.44% of global competitors.
Next Steps
With a track record of consistent dividend payments and a history of dividend growth, Bank First Corp stands out as a potentially attractive option for value investors seeking stable income. The company's low payout ratio and solid profitability suggest that its dividends are sustainable. Furthermore, Bank First Corp's growth metrics paint a picture of a company with a strong financial foundation capable of supporting ongoing dividend payments. Investors looking for high-dividend yield opportunities should consider Bank First Corp's promising combination of dividend sustainability and growth prospects. For those interested in further research, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
