Bank7 Corp (BSVN): A Comprehensive Analysis of Its Dividend Performance
Is Bank7 Corp a Good Pick for Dividend Investors? Let's Find Out
Bank7 Corp (NASDAQ:BSVN) recently announced a dividend of $0.21 per share, payable on October 10, 2023, with the ex-dividend date set for September 25, 2023. The upcoming payment has sparked interest in the company's dividend history, yield, and growth rates. Using GuruFocus data, we will delve into Bank7 Corp's dividend performance and assess its sustainability.
Understanding Bank7 Corp
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Bank7 Corp is a full-service commercial bank based in the United States. It focuses on providing exceptional service and meeting customers' banking needs through a variety of commercial and retail financial services. The bank offers deposit banking products, commercial checking, money market, and other deposit accounts, and retail deposit services. It also provides commercial real estate lending, hospitality lending, energy lending, commercial and industrial lending, and consumer lending services to individuals.
A Look at Bank7 Corp's Dividend History
Since 2019, Bank7 Corp has maintained a consistent dividend payment record, with payments distributed on a quarterly basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Bank7 Corp's Dividend Yield and Growth
As of today, Bank7 Corp has a 12-month trailing dividend yield of 2.53% and a 12-month forward dividend yield of 2.91%. This indicates an expected increase in dividend payments over the next 12 months. Over the past three years, Bank7 Corp's annual dividend growth rate was 37.50%. Based on these figures, the 5-year yield on cost of Bank7 Corp stock as of today is approximately 2.53%.
Is Bank7 Corp's Dividend Sustainable?
To assess the sustainability of the dividend, we need 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, ensuring the availability of funds for future growth and unexpected downturns. As of June 30, 2023, Bank7 Corp's dividend payout ratio is 0.16. Bank7 Corp's profitability rank of 5 out of 10 suggests fair profitability. The company has reported net profit in 7 years out of the past 10 years.
Bank7 Corp's Growth Metrics and Future Outlook
A company must have robust growth metrics to ensure the sustainability of dividends. Bank7 Corp's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Bank7 Corp's revenue has increased by approximately 22.40% per year on average, outperforming approximately 92.3% 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, Bank7 Corp's earnings increased by approximately 58.40% per year on average, outperforming approximately 95.23% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 13.30% outperforms approximately 65.95% of global competitors.
Conclusion
Considering Bank7 Corp's consistent dividend payments, impressive growth rate, low payout ratio, fair profitability, and robust growth metrics, the company presents an attractive proposition for dividend investors. However, as with any investment, potential investors should conduct thorough research and consider their financial goals and risk tolerance before making a decision. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
