09-05-2015, 04:21 PM
(09-05-2015, 11:16 AM)rapidacid Wrote:(09-05-2015, 08:09 AM)Kerim Wrote: BEN's yield is very interesting -- very low if you consider only the regular dividends, but much more exciting if you factor in the special dividends that they are fond of paying. Of course those are not predictable, but in the years that they've been paid, it can more than double the "regular" dividend.
Definitely forgot about this.
According to my calculations, since the beginning of 2000 BEN has paid out quarterly dividends that total to $8.98 / share. During this time they've also paid out 5 special dividends that have totaled $11.02 / share ( http://www.nasdaq.com/symbol/ben/dividend-history )
So actually $20 / share in dividends since 2000
Comparing the normal dividends over the past 15 years to the total dividends over the past 15 years gives the normal dividend as only 44.9% of the total dividends
8.98 / 20 = .449
BEN's current dividend is $0.60 / year
Solving for what BEN's total / shadow dividend might currently be gives us:
.449 = .6 / X
.449X = .6
X = .6 / .449
X = $1.34
BEN's current price is $39.01
Current stated yield:
$0.60 / $39.01 = 1.54%
Total current yield, given last 15 years of history, might look something like:
$1.34 / $39.01 = 3.43%
Nice analysis -- Thanks Rapid!
What's got me going about BEN right now is that with the recent price decline, it is the highest rated stock in my scoring system -- and that is completely ignoring the special dividends!
The P/E is nice and low, they sit on a ton of cash, and even after 35 years of consecutive (regular) dividend increases, the payout ratio is around 15 percent. Factoring in the special dividends would increase the payout ratio, of course. But really that is the beauty of their approach. They keep a lot of powder dry to reward patient shareholders with those special payouts.
Of course they are facing some headwinds. The continued popularity of indexing and the emergence of robo-advisors / fintech could put pressure on their AUM and the fees they can collect. And when the market is more volatile as it has been recently, people might flee the markets. But generally it is a very lucrative business they are in!
If it drops much lower, I might be backing up the truck on this one.
(09-05-2015, 01:33 PM)Dividendsrule Wrote: I have been nibbling on PBCT over the last year or so. Yield over 4%, and they kept raising the dividend through the recession. Clearly, dividend growth has been low since 2009, but with rising rates, they may stand to make more money and raise more.
Bank branches are in affluent states; Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire, and Maine.
Thanks for the reminder about this one. A trusted source recommended PBCT to me a while back, but I haven't taken a close look in a long time.