Stock Analysis
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- NasdaqGS:BSVN
Interested In Bank7's (NASDAQ:BSVN) Upcoming US$0.16 Dividend? You Have Four Days Left
Bank7 Corp. (NASDAQ:BSVN) stock is about to trade ex-dividend in four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. This means that investors who purchase Bank7's shares on or after the 21st of March will not receive the dividend, which will be paid on the 7th of April.
The company's upcoming dividend is US$0.16 a share, following on from the last 12 months, when the company distributed a total of US$0.48 per share to shareholders. Calculating the last year's worth of payments shows that Bank7 has a trailing yield of 2.0% on the current share price of $24.33. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing.
Check out our latest analysis for Bank7
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Bank7 paid out just 16% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That explains why we're not overly excited about Bank7's flat earnings over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, three years ago, Bank7 has lifted its dividend by approximately 6.3% a year on average.
To Sum It Up
Has Bank7 got what it takes to maintain its dividend payments? Bank7's earnings per share have not grown at all in recent years, although we like that it is paying out a low percentage of its earnings. We think there are likely better opportunities out there.
However if you're still interested in Bank7 as a potential investment, you should definitely consider some of the risks involved with Bank7. To help with this, we've discovered 2 warning signs for Bank7 that you should be aware of before investing in their shares.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
What are the risks and opportunities for Bank7?
Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers.
Rewards
Trading at 64.4% below our estimate of its fair value
Earnings are forecast to grow 9.07% per year
Earnings grew by 28% over the past year
Risks
Significant insider selling over the past 3 months
Further research on
Bank7
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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.
About NasdaqGS:BSVN
Bank7
Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers.
Very undervalued with solid track record.
