Victory Bancorp Inc's Dividend Analysis
Insight into Victory Bancorp Inc's Dividend Sustainability and Growth
Victory Bancorp Inc (VTYB) recently announced a dividend of $0.07 per share, payable on 2024-02-13, with the ex-dividend date set for 2024-01-26. 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 Victory Bancorp Inc's dividend performance and assess its sustainability.
What Does Victory Bancorp Inc Do?
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Victory Bancorp Inc operates a full-service commercial and consumer banking business. The Bank's focus is on small- and middle-market commercial and retail customers. The Bank originates secured and unsecured commercial loans, commercial mortgage loans, consumer loans and construction loans and does not make subprime loans. The Bank also offers revolving credit loans, small business loans and automobile loans. The Bank offers a variety of deposit products, including demand and savings deposits, regular savings accounts, investment certificates and fixed-rate certificates of deposit.
A Glimpse at Victory Bancorp Inc's Dividend History
Victory Bancorp Inc has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Victory Bancorp Inc's Dividend Yield and Growth
As of today, Victory Bancorp Inc currently has a 12-month trailing dividend yield of 2.22% and a 12-month forward dividend yield of 2.22%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Victory Bancorp Inc's annual dividend growth rate was 34.80%. Extended to a five-year horizon, this rate increased to 57.80% per year. Based on Victory Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Victory Bancorp Inc stock as of today is approximately 21.72%.
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, Victory Bancorp Inc's dividend payout ratio is 0.16.
Victory Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Victory Bancorp Inc's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Victory Bancorp Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Victory Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Victory Bancorp Inc's revenue has increased by approximately 11.50% per year on average, a rate that outperforms approximately 73.56% 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, Victory Bancorp Inc's earnings increased by approximately 19.30% per year on average, a rate that outperforms approximately 75.04% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 20.50%, which outperforms approximately 82.82% of global competitors.
Next Steps
Considering Victory Bancorp Inc's dividend payments, dividend growth rate, payout ratio, profitability and growth metrics, investors have several indicators that suggest the company's dividends may be sustainable in the foreseeable future. With a consistent dividend history, a low payout ratio, and solid growth metrics, Victory Bancorp Inc appears poised to continue rewarding shareholders with dividends. However, it's essential for investors to continue monitoring these factors, as changes in the market or company's financial health could influence future dividend sustainability. Engaged investors looking for similar investment opportunities can utilize the tools available on GuruFocus, such as the High Dividend Yield Screener, to find stocks that meet their criteria for dividend yield and sustainability.
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.
