First Bancorp Inc's Dividend Analysis
Insights into First Bancorp Inc's Upcoming Dividend and Financial Health
First Bancorp Inc (NASDAQ:FNLC) recently announced a dividend of $0.35 per share, payable on 2024-01-19, with the ex-dividend date set for 2024-01-05. 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 delve into First Bancorp Inc's dividend performance and assess its sustainability.
What Does First Bancorp Inc Do?
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First Bancorp Inc is a Damariscotta-based bank holding company providing a range of retail and commercial banking services including deposit accounts and consumer, commercial and mortgage loans. The company provides investment management and private banking services through an operating division of the bank. Its revenues are generally derived from dividends paid to the company by the bank.
A Glimpse at First Bancorp Inc's Dividend History
First Bancorp Inc has maintained a consistent dividend payment record since 1994, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down First Bancorp Inc's Dividend Yield and Growth
As of today, First Bancorp Inc currently has a 12-month trailing dividend yield of 4.74% and a 12-month forward dividend yield of 4.79%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, First Bancorp Inc's annual dividend growth rate was 3.90%. Extended to a five-year horizon, this rate increased to 9.10% per year. And over the past decade, First Bancorp Inc's annual dividends per share growth rate stands at 6.30%.
Based on First Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of First Bancorp Inc stock as of today is approximately 7.33%.
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. As of 2023-09-30, First Bancorp Inc's dividend payout ratio is 0.48, indicating a balance between distributing earnings and retaining funds for growth.
First 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 each year over the past decade, further solidifying its financial stability.
Growth Metrics: The Future Outlook
First Bancorp Inc's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of 11.30%, outperforming approximately 72.84% of global competitors. Its 3-year EPS growth rate of 14.70% per year on average is also noteworthy, outperforming approximately 67.4% of global competitors. Additionally, the 5-year EBITDA growth rate of 14.30% outperforms approximately 70.66% of global competitors, indicating a strong potential for sustained dividend payments.
Engaging Conclusion: First Bancorp Inc's Dividend Prospects
In conclusion, First Bancorp Inc's consistent dividend history, competitive yield, and robust growth metrics paint a promising picture for current and prospective investors. With a prudent payout ratio and fair profitability, the company appears well-positioned to continue its tradition of rewarding shareholders. Whether you're a seasoned value investor or considering your first foray into dividend stocks, First Bancorp Inc warrants attention as a potential addition to a balanced investment portfolio. Will its dividends continue to grow at an impressive rate, and can it maintain its financial health in the years to come? For those interested in high-dividend yield stocks, GuruFocus Premium offers the High Dividend Yield Screener as a tool to discover similar investment opportunities.
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.
