Exploring the past, present, and future of MYBF’s dividends
Muncy Bank Financial Inc(MYBF, Financial) recently announced a dividend of $0.4 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-10-04. As investors look forward to this upcoming payment, the spotlight also shines on the company’s dividend history, yield, and growth rates. Using the data from GuruFocus, let’s deep dive into Muncy Bank Financial Incs dividend performance and assess its sustainability.
Understanding Muncy Bank Financial Inc’s Business
Muncy Bank Financial Inc is a holding company. It provides commercial, mortgage, residential real estate, and consumer loan financing as well as deposit, investment, and trust services to its customers serviced by its five community banking offices. The company’s loan products include mortgage, home equity, vehicle, personal unsecured and commercial loans, as well as business and real estate loans; and consumer loan financing. It also offers investment services college savings strategies, insurance protection, portfolio analysis, wealth transition, and retirement accounts.
Tracing Muncy Bank Financial Inc’s Dividend History
Muncy Bank Financial Inc has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting Muncy Bank Financial Inc’s Dividend Yield and Growth
As of today, Muncy Bank Financial Inc currently has a 12-month trailing dividend yield of 4.48% and a 12-month forward dividend yield of 4.51%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Muncy Bank Financial Inc’s annual dividend growth rate was 14.20%. Extended to a five-year horizon, this rate increased to 15.20% per year. And over the past decade, Muncy Bank Financial Inc’s annual dividends per share growth rate stands at an impressive 13.20%.
Based on Muncy Bank Financial Inc’s dividend yield and five-year growth rate, the 5-year yield on cost of Muncy Bank Financial Inc stock as of today is approximately 9.09%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company’s payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2022-12-31, Muncy Bank Financial Inc’s dividend payout ratio is 0.39.
Muncy Bank Financial Inc’s profitability rank, offers an understanding of the company’s earnings prowess relative to its peers. GuruFocus ranks Muncy Bank Financial Inc’s profitability 6 out of 10 as of 2022-12-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Future Prospects: Evaluating Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Muncy Bank Financial Inc’s growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Muncy Bank Financial Inc’s revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Muncy Bank Financial Inc’s revenue has increased by approximately 15.00% per year on average, a rate that outperforms than approximately 82.89% of global competitors.
The company’s 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Muncy Bank Financial Inc’s earnings increased by approximately 17.80% per year on average, a rate that outperforms than approximately 72.02% of global competitors.
Lastly, the company’s 5-year EBITDA growth rate of 11.20%, which outperforms than approximately 59.36% of global competitors.
Concluding Thoughts
Given Muncy Bank Financial Inc’s consistent dividend payments, impressive growth rate, and solid profitability, it stands as a strong contender for dividend-focused investors. The company’s robust growth metrics further reinforce the sustainability of its dividends. However, investors should continue to monitor these metrics to ensure the company’s ability to maintain its dividend performance in the long run.
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