Hingham Institution for Savings's Dividend Analysis
An In-depth Look at Hingham Institution for Savings's Dividend Performance and Sustainability
Hingham Institution for Savings (NASDAQ:HIFS) recently announced a dividend of $0.63 per share, payable on 2023-11-08, with the ex-dividend date set for 2023-10-27. 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 Hingham Institution for Savings's dividend performance and assess its sustainability.
About Hingham Institution for Savings
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Hingham Institution for Savings is a savings bank based in Hingham, Massachusetts. The bank is involved in the business of residential and commercial real estate mortgage lending and also financial and banking services. Its portfolio mainly encompasses commercial real estate, residential owner occupied real estate, and loans for construction of residential real estate.
Hingham Institution for Savings's Dividend History
Hingham Institution for Savings has maintained a consistent dividend payment record since 1994. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Examining Hingham Institution for Savings's Dividend Yield and Growth
As of today, Hingham Institution for Savings currently has a 12-month trailing dividend yield of 1.65% and a 12-month forward dividend yield of 1.66%. This suggests an expectation of increased dividend payments over the next 12 months.
Hingham Institution for Savings's dividend yield of 1.65% is near a 10-year high and outperforms than 10.89 of global competitors in the Banks industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Hingham Institution for Savings's annual dividend growth rate was 23.10%. Extended to a five-year horizon, this rate decreased to 13.30% per year. And over the past decade, Hingham Institution for Savings's annual dividends per share growth rate stands at 8.10%.
Based on Hingham Institution for Savings's dividend yield and five-year growth rate, the 5-year yield on cost of Hingham Institution for Savings stock as of today is approximately 3.08%.
Assessing Dividend Sustainability: 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 2023-06-30, Hingham Institution for Savings's dividend payout ratio is 0.14.
Hingham Institution for Savings's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hingham Institution for Savings's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Reviewing Growth Metrics for Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hingham Institution for Savings's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Hingham Institution for Savings's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hingham Institution for Savings's revenue has increased by approximately 3.80% per year on average, a rate that underperforms than approximately 64.24% 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, Hingham Institution for Savings's earnings increased by approximately -1.50% per year on average, a rate that underperforms than approximately 79.62% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.60%, which underperforms than approximately 32.67% of global competitors.
Conclusion
In conclusion, Hingham Institution for Savings's consistent dividend payments, impressive growth rate, and robust profitability make it a compelling consideration for income investors. However, investors should also consider the company's payout ratio and growth metrics to assess the sustainability of its dividends. With a fair growth outlook and a profitability rank that suggests solid earnings prowess, Hingham Institution for Savings appears well-positioned to maintain its dividend payments in the foreseeable future.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
