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What To Know Before Buying Republic Bancorp Inc (NASDAQ:RBCA.A) For Its Dividend

David Owens

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. Republic Bancorp Inc (NASDAQ:RBCA.A) has returned to shareholders over the past 10 years, an average dividend yield of 3.00% annually. Should it have a place in your portfolio? Let’s take a look at Republic Bancorp in more detail. Check out our latest analysis for Republic Bancorp

Here’s how I find good dividend stocks

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

  • Does it pay an annual yield higher than 75% of dividend payers?

  • Does it consistently pay out dividends without missing a payment of significantly cutting payout?

  • Has dividend per share amount increased over the past?

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

  • Will it have the ability to keep paying its dividends going forward?

NasdaqGS:RBCA.A Historical Dividend Yield Apr 24th 18
NasdaqGS:RBCA.A Historical Dividend Yield Apr 24th 18

How does Republic Bancorp fare?

The company currently pays out 35.55% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. 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. In the case of RBCA.A it has increased its DPS from $0.48 to $0.97 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. Relative to peers, Republic Bancorp produces a yield of 2.32%, which is on the low-side for Banks stocks.

Next Steps:

Taking into account the dividend metrics, Republic Bancorp ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three fundamental factors you should further research:

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

  2. Valuation: What is RBCA.A 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 RBCA.A 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.