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3 Days Left To Cash In On Banc of California Inc (BANC) Dividend, Should You Buy?

Shares of Banc of California Inc (NYSE:BANC) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.13 per share, investors must have owned the shares prior to 14 December 2017, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. So if you want to cash in on BANC’s dividend payment and are not yet a shareholder, you have only few days left! Today I am going to take a look at BANC’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Banc of California

Here’s how I find good dividend stocks

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

  • Is its annual yield among the top 25% of dividend-paying companies?

  • Has it paid dividend every year without dramatically reducing payout in the past?

  • Has it increased its dividend per share amount over the past?

  • Can it afford to pay the current rate of dividends from its earnings?

  • Will the company be able to keep paying dividend based on the future earnings growth?

NYSE:BANC Historical Dividend Yield Dec 11th 17
NYSE:BANC Historical Dividend Yield Dec 11th 17

How well does Banc of California fit our criteria?

The company currently pays out 35.45% of its earnings as a dividend, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect BANC’s payout to increase to 42.30% of its earnings, which leads to a dividend yield of around 2.48%. However, EPS is forecasted to fall to $1.01 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Not only have dividend payouts from Banc of California fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves. In terms of its peers, BANC generates a yield of 2.46%, which is on the low-side for banks stocks.

What this means for you:

Are you a shareholder? If BANC is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be beneficial exploring other income stocks as alternatives to BANC or even look at high-growth stocks to supplement your steady income stocks. I recommend continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? If you are building an income portfolio, then Banc of California is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, BANC could still offer some interesting investment opportunities. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Check our latest free fundmental analysis to explore other aspects of BANC.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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