Bank of the James Financial Group (NASDAQ:BOTJ) Is Paying Out A Dividend Of $0.08
Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) has announced that it will pay a dividend of $0.08 per share on the 15th of September. This means the annual payment will be 2.9% of the current stock price, which is lower than the industry average.
View 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.
Having paid out dividends for 9 years, Bank of the James Financial Group has a good history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Bank of the James Financial Group's latest earnings report puts its payout ratio at 16%, showing that the company can pay out its dividends comfortably.
Looking forward, earnings per share could rise by 20.4% over the next year if the trend from the last few years continues. 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
Bank of the James Financial Group's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. Since 2014, the dividend has gone from $0.182 total annually to $0.32. This implies that the company grew its distributions at a yearly rate of about 6.5% 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. Bank of the James Financial Group has seen EPS rising for the last five years, at 20% per annum. 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 of these factors considered, we think this has solid potential as a dividend stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 2 warning signs for Bank of the James Financial Group that you should be aware of before investing. 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.
