Yahoo Finance Eagle Bancorp Inc's Dividend Analysis
Assessing the Sustainability and Growth of Eagle Bancorp Inc's Dividends
Eagle Bancorp Inc (NASDAQ:EGBN) recently announced a dividend of $0.45 per share, payable on 2024-04-30, with the ex-dividend date set for 2024-04-17. 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 Eagle Bancorp Inc's dividend performance and assess its sustainability.
What Does Eagle Bancorp Inc Do?
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Eagle Bancorp Inc is a bank holding company that operates through its wholly-owned subsidiary, EagleBank. The company offers a wide array of commercial banking services to business and professional clients, as well as consumer banking services to individuals. With a diverse portfolio of services including commercial loans, asset-based lending, real estate loans, and personal banking products, Eagle Bancorp Inc caters to a broad customer base. These offerings are crucial for the company's revenue generation and, consequently, its ability to maintain dividend payments to shareholders.
A Glimpse at Eagle Bancorp Inc's Dividend History
Eagle Bancorp Inc has upheld a steadfast record of dividend payments since 2019, rewarding shareholders with quarterly distributions. This consistent return to investors reflects positively on the company's financial health and commitment to shareholder value. Below is a chart illustrating the annual Dividends Per Share to track historical trends, showcasing Eagle Bancorp Inc's dedication to its dividend policy.
Breaking Down Eagle Bancorp Inc's Dividend Yield and Growth
Eagle Bancorp Inc currently boasts a 12-month trailing dividend yield of 8.41% and a matching 12-month forward dividend yield of 8.41%. This parallel suggests an expectation of consistent dividend payments over the upcoming year. Over the past three years, Eagle Bancorp Inc's annual dividend growth rate was an impressive 15.30%, indicating a strong trend in dividend increases. Additionally, based on the current yield and five-year growth rate, the 5-year yield on cost for Eagle Bancorp Inc stock stands at approximately 8.41%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a critical measure when assessing the sustainability of a company's dividend. Eagle Bancorp Inc's dividend payout ratio is currently at a moderate 0.41, indicating a balanced approach between distributing earnings to shareholders and retaining funds for future growth. The company's profitability rank of 5 out of 10, as of 2023-12-31, suggests fair profitability relative to its peers. Consistent positive net income over the past decade bolsters Eagle Bancorp Inc's financial stability, reinforcing the potential for ongoing dividend payments.
Growth Metrics: The Future Outlook
Eagle Bancorp Inc's growth rank of 5 out of 10 indicates a fair growth outlook, essential for the longevity of dividend payments. While the company's revenue per share and 3-year revenue growth rate suggest a strong revenue model, the average annual increase of -3.30% lags behind many global competitors. Similarly, Eagle Bancorp Inc's 3-year EPS growth rate and 5-year EBITDA growth rate also underperform when compared to its global peers, suggesting areas for potential improvement.
Engaging Conclusion
Considering Eagle Bancorp Inc's dividend payments, growth rate, payout ratio, and profitability, the company presents a mixed picture for investors. While the dividend yield and growth rate are attractive, the sustainability of these dividends could be challenged by the company's growth metrics. Investors should weigh these factors carefully, keeping an eye on Eagle Bancorp Inc's strategic initiatives to bolster growth and maintain its dividend policy. For those seeking high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover opportunities that align with their investment goals.
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.
