Farmers & Merchants Bancorp's Dividend Analysis
In This Article:
Exploring the Dividend Performance and Sustainability of Farmers & Merchants Bancorp (FMCB)
Farmers & Merchants Bancorp (FMCB) recently announced a dividend of $8.8 per share, payable on 2024-07-01, with the ex-dividend date set for 2024-06-11. 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 Farmers & Merchants Bancorp's dividend performance and assess its sustainability.
What Does Farmers & Merchants Bancorp Do?
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Farmers & Merchants Bancorp is a bank holding company. The bank offers services such as checking accounts, savings accounts, money market accounts, online banking, and other banking services.
A Glimpse at Farmers & Merchants Bancorp's Dividend History
Farmers & Merchants Bancorp has maintained a consistent dividend payment record since 1966. Dividends are currently distributed on a bi-annually basis. Farmers & Merchants Bancorp has increased its dividend each year since 1966. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 58 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Farmers & Merchants Bancorp's Dividend Yield and Growth
As of today, Farmers & Merchants Bancorp currently has a 12-month trailing dividend yield of 1.74% and a 12-month forward dividend yield of 1.79%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Farmers & Merchants Bancorp's annual dividend growth rate was 5.10%. Extended to a five-year horizon, this rate decreased to 4.30% per year. And over the past decade, Farmers & Merchants Bancorp's annual dividends per share growth rate stands at 3.10%.
Based on Farmers & Merchants Bancorp's dividend yield and five-year growth rate, the 5-year yield on cost of Farmers & Merchants Bancorp stock as of today is approximately 2.15%.
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 2024-03-31, Farmers & Merchants Bancorp's dividend payout ratio is 0.15.