Bank of the James Financial Group (NASDAQ:BOTJ) Will Pay A Dividend Of $0.08
Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) will pay a dividend of $0.08 on the 15th of September. This means the dividend yield will be fairly typical at 3.0%.
See our latest analysis for Bank of the James Financial Group
Bank of the James Financial Group's Dividend Forecasted To Be Well Covered By Earnings
Solid dividend yields are great, but they only really help us if the payment is sustainable.
Having paid out dividends for 9 years, Bank of the James Financial Group has a good history of paying out a part of its earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 16% also shows that Bank of the James Financial Group is able to comfortably pay dividends.
If the trend of the last few years continues, EPS will grow by 20.4% over the next 12 months. If the dividend continues along recent trends, we estimate the future payout ratio will be 14%, which is in the range that makes us comfortable with the sustainability of the dividend.
Bank of the James Financial Group Is Still Building Its Track Record
It is great to see that Bank of the James Financial Group has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2014, the annual payment back then was $0.182, compared to the most recent full-year payment of $0.32. This implies that the company grew its distributions at a yearly rate of about 6.5% over that duration. Bank of the James Financial Group has a nice track record of dividend growth but we would wait until we see a longer track record before getting too confident.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. Bank of the James Financial Group has impressed us by growing EPS at 20% per year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.
We Really Like Bank of the James Financial Group's Dividend
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 2 warning signs for Bank of the James Financial Group that investors should take into consideration. Is Bank of the James Financial Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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