Boston, MA 09/19/2014 (wallstreetpr) – A holding company, First Bancorp Inc (NASDAQ:FNLC) has maintained its quarterly dividend rate of 21 cents a share after lifting it from 20 cents a share in the previous quarter. For more than 20 quarters, the company has maintained a dividend rate of 19.5 cents a share. As a result, there was not much of the growth rate for dividend either for the three-year average period or the five-year average period.
Only in the current calendar year, the company has increased it to 20 cents a share per quarter.
Dividend Payment
First Bancorp Inc (NASDAQ:FNLC) disclosed that the cash dividend would be paid to all the shareholders based on the names appearing on record as on October 6, its statement indicated. The quarterly dividend works out to 84 cents a share on an annualized basis. It has set October 31 for paying the quarterly dividend.
First Bancorp Inc (NASDAQ:FNLC) President and Chief Executive Officer, Daniel Daigneault, said that with strong earnings and improved credit quality, maintaining the dividend rate at the current level was in accordance with its overall improved results. He added that it was important to pay dividend generously to its shareholders and remained an important factor in its total valuation and the return of its shares.
Yield And Growth Rate
The latest dividend offers 5.00% yield, slightly lower than the five-year average dividend yield of 5.1%, while the projected ten-year average yield would increase to 5.68%. The current dividend payout ratio represented 61.00%, which was also lower than the five-year average dividend payout ratio of 66.00%.
Similarly, the average dividend growth rate for a three-year period was only 1.07% though it was higher than the five-year average dividend growth pace of 0.64%.
According to Nasdaq data, First Bancorp was paying a dividend of 19.5 cents a share from October 2008 to till October 2013. Before this period too, it was only increasing the dividend pace, but never looked back. However, the company seems to be adopting a very conservative approach towards dividend payment. There is enough room for First Bancorp Inc (NASDAQ:FNLC) to lift its dividend. However, will it do it would remain a question mark.
