Yahoo Finance BayCom (NASDAQ:BCML) Is Paying Out A Dividend Of $0.10
The board of BayCom Corp (NASDAQ:BCML) has announced that it will pay a dividend of $0.10 per share on the 11th of July. This means the annual payment will be 2.0% of the current stock price, which is lower than the industry average.
View our latest analysis for BayCom
BayCom's Payment Expected To Have Solid Earnings Coverage
While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.
Having paid out dividends for only 2 years, BayCom does not have much of a history being a dividend paying company. While it has a shorter history of paying out dividends, BayCom's payout ratio of 18% is a great sign for current shareholders, as this means that earnings greatly cover dividends.
Over the next year, EPS is forecast to fall by 3.9%. But if the dividend continues along recent trends, we estimate the future payout ratio could be 18%, which we would consider to be quite comfortable looking forward, with most of the company's earnings left over to grow the business in the future.
BayCom Is Still Building Its Track Record
The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. The annual payment during the last 2 years was $0.20 in 2022, and the most recent fiscal year payment was $0.40. This implies that the company grew its distributions at a yearly rate of about 41% over that duration. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.
We Could See BayCom's Dividend Growing
Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that BayCom has been growing its earnings per share at 9.9% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for BayCom's prospects of growing its dividend payments in the future.
BayCom Looks Like A Great Dividend Stock
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. If earnings do fall over the next 12 months, the dividend could be buffeted a little bit, but we don't think it should cause too much of a problem in the long term. All of these factors considered, we think this has solid potential as a dividend stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. To that end, BayCom has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. 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.
