Yahoo Finance Bank of the James Financial Group (NASDAQ:BOTJ) Is Paying Out A Dividend Of $0.07
The board of Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) has announced that it will pay a dividend of $0.07 per share on the 16th of September. The dividend yield is 2.2% based on this payment, which is a little bit low compared to the other companies in the industry.
Check out our latest analysis for Bank of the James Financial Group
Bank of the James Financial Group's Dividend Forecasted To Be Well Covered By Earnings
It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.
Bank of the James Financial Group has established itself as a dividend paying company, given its 8-year history of distributing earnings to shareholders. Using data from its latest earnings report, Bank of the James Financial Group's payout ratio sits at 16%, an extremely comfortable number that shows that it can pay its dividend.
Over the next year, EPS could expand by 23.6% if recent trends continue. Assuming the dividend continues along recent trends, we think the future payout ratio could be 14% by next year, which is in a pretty sustainable range.
Bank of the James Financial Group Doesn't Have A Long Payment History
Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The annual payment during the last 8 years was $0.182 in 2014, and the most recent fiscal year payment was $0.28. This implies that the company grew its distributions at a yearly rate of about 5.5% over that duration. The dividend has been growing as a reasonable rate, which we like. However, investors will probably want to see a longer track record before they consider Bank of the James Financial Group to be a consistent dividend paying stock.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Bank of the James Financial Group has grown earnings per share at 24% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.
Bank of the James Financial Group Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Bank of the James Financial Group might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 2 warning signs for Bank of the James Financial Group that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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