BayCom (NASDAQ:BCML) Has Announced A Dividend Of $0.10
BayCom Corp's (NASDAQ:BCML) investors are due to receive a payment of $0.10 per share on 12th of April. Including this payment, the dividend yield on the stock will be 2.0%, which is a modest boost for shareholders' returns.
View our latest analysis for BayCom
BayCom's Dividend Forecasted To Be Well Covered By Earnings
If it is predictable over a long period, even low dividend yields can be attractive.
BayCom is just starting to establish itself as being able to pay dividends to shareholders, given its short 2-year history of distributing earnings. Based on its last earnings report however, the payout ratio is at a comfortable 18%, meaning that BayCom may be able to sustain this dividend for future years if it continues on this earnings trend.
Over the next 3 years, EPS is forecast to expand by 7.5%. The future payout ratio could be 17% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
BayCom Doesn't Have A Long Payment History
The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 2 years, which isn't that long in the grand scheme of things. The dividend has gone from an annual total of $0.20 in 2022 to the most recent total annual payment of $0.40. This works out to be a compound annual growth rate (CAGR) of approximately 41% a year over that time. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed.
The Dividend Has Growth Potential
The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that BayCom has been growing its earnings per share at 9.8% a year over the past five years. BayCom definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
BayCom Looks Like A Great Dividend Stock
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. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Case in point: We've spotted 2 warning signs for BayCom (of which 1 is potentially serious!) you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
