Five Small-Cap Regional Banks With Payout Ratio Between 30% to 45% – (JNS, NPBC, ONB, CVBF, SNV)

  on Sep 24,2012 Posted in Investment Ideas ,Small Cap Ideas
 
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One way to determine various characteristics and operations of the company is to look at its payout ratio. Small fast-growing companies are more inclined toward reinvesting their earnings in the business in order to increase their presence and maintain growth. These companies often pay a low to no dividend.
But you should look at a broader picture as a low payout ratio also provides a sign that a company’s dividend is small relative to its profit, indicating that the dividend is likely to be secure and reliable. There are some other restrictions that prevent a company to pay dividends. Contractual restrictions are one of those in which lenders may discontinue the dividend payments to protect their interests particularly when the firm is facing liquidity problems.

Janus Capital Group Inc.’s (NYSE:JNS) annual dividend yield stands at 2.59% and maintains a dividend payout ratio of 36.11%. The stock has a dividend of $0.24 annually. JNS shares traded in the range of $5.36 – $9.70 in the last 52 weeks. JNS is a publicly owned asset management holding company with approximately $167.7 billion in assets under management.

National Penn Bancshares (NASDAQ:NPBC) operates as the bank holding company for National Penn Bank that provides commercial banking products and services to residents and businesses primarily in eastern and central Pennsylvania. National Penn Bancshares pays a dividend of $0.36 annually. The company has an annual dividend yield of 3.81% and has a dividend payout ratio at 30.97%. Shares of NPBC have been floating in the range of $6.30 – $9.85 in the last 52 weeks.

Old National Bancorp (NYSE:ONB) has an annual dividend of $0.36 while keeping its dividend yield at 2.59%. The company maintains a dividend payout ratio of 34.42%. Shares of ONB have been trading in the range of $8.84– $14.15 in last 52 weeks. ONB operates as the bank holding company for Old National Bank, which provides financial services to individuals and commercial customers primarily in Indiana.

CVB Financial Corp. (NASDAQ:CVBF) operates as a bank holding company for Citizens Business Bank that provides various banking and trust services for small and medium-sized businesses, professionals, and individuals. CVB Financial Corp pays a dividend of $0.34 annually. The stock has an annual dividend yield of 2.81% and maintains a dividend payout ratio of 39.68%. Shares of CVBF have been floating in the range of $7.28 – $12.95 in the last 52 weeks.

Synovus Financial Corp.’s (NYSE:SNV) shares have been trading in the range of $0.94 – $2.49 in the last 52 weeks. The company pays a dividend of $0.04 annually and has a dividend payout ratio of 42.13%. The stock maintains an annual dividend yield of 1.64%. SNV a financial services and bank holding company, provides integrated financial services in Georgia, Alabama, South Carolina, Florida, and Tennessee.

Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.

 



 

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