Bank of Marin Bancorp (NASDAQ:BMRC) Has Affirmed Its Dividend Of $0.25
Bank of Marin Bancorp's (NASDAQ:BMRC) investors are due to receive a payment of $0.25 per share on 10th of November. The dividend yield will be 6.0% based on this payment which is still above the industry average.
View our latest analysis for Bank of Marin Bancorp
Bank of Marin Bancorp's Earnings Will Easily Cover The Distributions
If the payments aren't sustainable, a high yield for a few years won't matter that much.
Bank of Marin Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Bank of Marin Bancorp's last earnings report, the payout ratio is at a decent 50%, meaning that the company is able to pay out its dividend with a bit of room to spare.
EPS is set to fall by 27.3% over the next 3 years. Despite that, analysts estimate the future payout ratio could be 67% over the same time period, which is in a pretty comfortable range.
Bank of Marin Bancorp Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2013, the annual payment back then was $0.36, compared to the most recent full-year payment of $1.00. This works out to be a compound annual growth rate (CAGR) of approximately 11% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.
Bank of Marin Bancorp May Find It Hard To Grow The Dividend
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Earnings has been rising at 2.6% per annum over the last five years, which admittedly is a bit slow. The company has been growing at a pretty soft 2.6% per annum, and is paying out quite a lot of its earnings to shareholders. While this isn't necessarily a negative, it definitely signals that dividend growth could be constrained in the future unless earnings start to pick up again.
Our Thoughts On Bank of Marin Bancorp's Dividend
Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. While Bank of Marin Bancorp is earning enough to cover the dividend, we are generally unimpressed with its future prospects. This company is not in the top tier of income providing stocks.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. 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 1 warning sign for Bank of Marin Bancorp that investors should take into consideration. Is Bank of Marin Bancorp 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.
