Bank of the James Financial Group (NASDAQ:BOTJ) Has Affirmed Its Dividend Of $0.10

Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) has announced that it will pay a dividend of $0.10 per share on the 20th of June. This means that the annual payment will be 2.9% of the current stock price, which is in line with the average for the industry.

Our free stock report includes 1 warning sign investors should be aware of before investing in Bank of the James Financial Group. Read for free now.

Bank of the James Financial Group's Dividend Forecasted To Be Well Covered By Earnings

Unless the payments are sustainable, the dividend yield doesn't mean too much.

Having distributed dividends for at least 10 years, Bank of the James Financial Group has a long history of paying out a part of its earnings to shareholders. Based on Bank of the James Financial Group's last earnings report, the payout ratio is at a decent 28%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Over the next year, EPS could expand by 5.4% if recent trends continue. If the dividend continues along recent trends, we estimate the future payout ratio will be 28%, which is in the range that makes us comfortable with the sustainability of the dividend.

Check out our latest analysis for Bank of the James Financial Group

Bank of the James Financial Group Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2015, the dividend has gone from $0.182 total annually to $0.40. This means that it has been growing its distributions at 8.2% per annum over that time. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.

We Could See Bank of the James Financial Group's Dividend Growing

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Bank of the James Financial Group has seen EPS rising for the last five years, at 5.4% per annum. Bank of the James Financial Group definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Bank of the James Financial Group's Dividend

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. Distributions are quite easily covered by earnings, which are also being converted to cash flows. 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. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for Bank of the James Financial Group that investors should take into consideration. 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.