Eagle Bancorp Inc's Dividend Analysis
An In-Depth Look at Eagle Bancorp Inc's Upcoming Dividend and Financial Health
Eagle Bancorp Inc (NASDAQ:EGBN) recently announced a dividend of $0.45 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-10. 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 Eagle Bancorp Inc's dividend performance and assess its sustainability.
What Does Eagle Bancorp Inc Do?
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Eagle Bancorp Inc is a bank holding company that operates through its wholly-owned subsidiary, EagleBank. The bank offers a comprehensive suite of commercial banking services to business and professional clients, as well as consumer banking services to individuals. These services encompass a variety of financial solutions, including commercial loans, asset-based lending, accounts receivable financing, construction and commercial real estate loans, consumer home equity lines of credit, personal lines of credit and term loans, consumer loans, personal credit cards, and residential mortgage loans.
A Glimpse at Eagle Bancorp Inc's Dividend History
Eagle Bancorp Inc has maintained a consistent dividend payment record since 2019, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Eagle Bancorp Inc's Dividend Yield and Growth
As of today, Eagle Bancorp Inc currently has a 12-month trailing dividend yield of 6.10% and a 12-month forward dividend yield of 6.10%, suggesting an expectation of consistent dividend payments over the next year. Over the past three years, Eagle Bancorp Inc's annual dividend growth rate was an impressive 69.70%. Based on Eagle Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Eagle Bancorp Inc stock as of today is approximately 6.10%.
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, Eagle Bancorp Inc's dividend payout ratio is 0.34.
Eagle Bancorp Inc's profitability rank of 6 out of 10 as of 2023-09-30, suggests fair profitability. The company has reported positive net income for each of the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Eagle Bancorp Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. The revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. However, Eagle Bancorp Inc's revenue has increased by approximately 2.80% per year on average, a rate that underperforms approximately 71.85% 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, Eagle Bancorp Inc's earnings increased by approximately 1.60% per year on average, a rate that underperforms approximately 73.67% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.90%, underperforms approximately 58.97% of global competitors.
Concluding Thoughts on Eagle Bancorp Inc's Dividend Prospects
Considering Eagle Bancorp Inc's consistent dividend payments, robust dividend growth rate, reasonable payout ratio, and fair profitability, the company presents an attractive profile for value investors focusing on dividend income. While growth metrics indicate some underperformance relative to global competitors, Eagle Bancorp Inc's financial stability and commitment to returning value to shareholders remain evident. Investors should weigh these factors as they consider adding EGBN to their portfolios. Will Eagle Bancorp Inc continue its dividend consistency in the face of dynamic market conditions? This remains a key question for investors to ponder.
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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.
