Farmers & Merchants Bancorp Inc. (NASDAQ:FMAO) Announces Quarterly Dividend of $0.23

Key Points

• Dividend: Farmers & Merchants Bancorp declared a quarterly dividend of $0.23 per share, payable April 20 to holders of record April 3 (ex-dividend April 2), implying an annualized yield of about 3.7%.
• Dividend sustainability and track record: The bank has raised its dividend for 19 consecutive years and pays out roughly 40.7% of earnings, with analysts forecasting ~$2.02 EPS next year (implying a ~45.5% payout ratio), indicating the dividend appears well covered.
• Recent performance and valuation: Last quarter FMAO beat estimates with EPS of $0.71 (vs. $0.67) and revenue of $32.45M (vs. $27.30M); the stock trades at a P/E of 10.3 and a market cap around $363M.

Farmers & Merchants Bancorp Inc. (NASDAQ:FMAO - Get Free Report) declared a quarterly dividend on Tuesday, March 24th. Stockholders of record on Friday, April 3rd will be given a dividend of 0.23 per share by the financial services provider on Monday, April 20th. This represents a c) annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend is Thursday, April 2nd.

Farmers & Merchants Bancorp has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 19 years. Farmers & Merchants Bancorp has a dividend payout ratio of 40.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Farmers & Merchants Bancorp to earn $2.02 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 45.5%.

Farmers & Merchants Bancorp Price Performance

Shares of FMAO opened at $24.92 on Wednesday. Farmers & Merchants Bancorp has a fifty-two week low of $20.88 and a fifty-two week high of $29.83. The firm's 50 day moving average price is $26.42 and its 200 day moving average price is $25.57. The company has a market cap of $362.84 million, a P/E ratio of 10.30 and a beta of 0.85. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.71.

Farmers & Merchants Bancorp (NASDAQ:FMAO - Get Free Report) last released its earnings results on Thursday, February 12th. The financial services provider reported $0.71 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.67 by $0.04. The company had revenue of $32.45 million for the quarter, compared to analyst estimates of $27.30 million. Farmers & Merchants Bancorp had a net margin of 17.47% and a return on equity of 9.33%. On average, research analysts forecast that Farmers & Merchants Bancorp will post 1.82 earnings per share for the current fiscal year.

Farmers & Merchants Bancorp Company Profile

Farmers & Merchants Bancorp NASDAQ: FMAO is the bank holding company for Farmers & Merchants Bank of Central California, a community-focused institution headquartered in Los Banos, California. The bank traces its roots to 1916 and has grown to serve individuals, businesses and agricultural enterprises throughout the western San Joaquin Valley. Operating with a commitment to local decision-making, the company emphasizes personalized service and close ties to the communities in which it operates.

Through its banking subsidiary, Farmers & Merchants offers a comprehensive suite of financial products and services, including checking and savings accounts, certificates of deposit, online and mobile banking platforms, and merchant services.

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