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Evans Bancorp Inc (NYSEMKT:EVBN) Is An Attractive Dividend Stock, Here’s Why

Casey Hall

Over the past 10 years Evans Bancorp Inc (AMEX:EVBN) has returned an average of 3.00% per year from dividend payouts. The company is currently worth US$217.12M, and now yields roughly 2.04%. Let’s dig deeper into whether Evans Bancorp should have a place in your portfolio. See our latest analysis for Evans Bancorp

5 questions to ask before buying a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

  • Is it paying an annual yield above 75% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has the amount of dividend per share grown over the past?

  • Can it afford to pay the current rate of dividends from its earnings?

  • Will the company be able to keep paying dividend based on the future earnings growth?

AMEX:EVBN Historical Dividend Yield Apr 25th 18
AMEX:EVBN Historical Dividend Yield Apr 25th 18

How does Evans Bancorp fare?

Evans Bancorp has a trailing twelve-month payout ratio of 36.17%, which means that the dividend is covered by earnings. However, going forward, analysts expect EVBN’s payout to fall to 20.92% of its earnings, which leads to a dividend yield of 1.78%. However, EPS should increase to $3.2, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. EVBN has increased its DPS from $0.74 to $0.92 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. In terms of its peers, Evans Bancorp generates a yield of 2.04%, which is on the low-side for Banks stocks.

Next Steps:

With this in mind, I definitely rank Evans Bancorp as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three fundamental aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for EVBN’s future growth? Take a look at our free research report of analyst consensus for EVBN’s outlook.

  2. Valuation: What is EVBN worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether EVBN is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.