First National (FXNC) Declares $0.15 Dividend

First National said on May 10, 2023 that its board of directors declared a regular quarterly dividend of $0.15 per share ($0.60 annualized). Previously, the company paid $0.15 per share.

Shares must be purchased before the ex-div date of May 25, 2023 to qualify for the dividend. Shareholders of record as of May 26, 2023 will receive the payment on June 9, 2023.

At the current share price of $14.64 / share, the stock's dividend yield is 4.10%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.33%, the lowest has been 0.89%, and the highest has been 4.22%. The standard deviation of yields is 0.83 (n=228).

The current dividend yield is 2.13 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.22. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.36%, demonstrating that it has increased its dividend over time.

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What is the Fund Sentiment?

There are 47 funds or institutions reporting positions in First National. This is a decrease of 1 owner(s) or 2.08% in the last quarter. Average portfolio weight of all funds dedicated to FXNC is 0.28%, an increase of 17.23%. Total shares owned by institutions increased in the last three months by 0.91% to 2,218K shares.

Analyst Price Forecast Suggests 25.41% Upside

As of May 11, 2023, the average one-year price target for First National is 18.36. The forecasts range from a low of 18.18 to a high of $18.90. The average price target represents an increase of 25.41% from its latest reported closing price of 14.64.

See our leaderboard of companies with the largest price target upside.

The projected annual non-GAAP EPS is 2.40.

What are Other Shareholders Doing?

Fourthstone holds 624K shares representing 9.94% ownership of the company. In it's prior filing, the firm reported owning 623K shares, representing an increase of 0.21%. The firm decreased its portfolio allocation in FXNC by 8.20% over the last quarter.

Siena Capital Partners GP holds 316K shares representing 5.04% ownership of the company. No change in the last quarter.

TFO USA holds 311K shares representing 4.96% ownership of the company. No change in the last quarter.

Banc Funds Co holds 223K shares representing 3.55% ownership of the company. No change in the last quarter.

Cutler Capital Management holds 197K shares representing 3.14% ownership of the company. No change in the last quarter.

First National Background Information
(This description is provided by the company.)

First Bank is a community bank serving the top of Virginia, the Shenandoah Valley, south central Virginia, and Richmond. First Bank first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its website, www.fbvirginia.com, its mobile banking platform, a network of ATMs located throughout its market area, a loan production office, a customer service center in a retirement community, and 14 bank branch office locations located throughout the Shenandoah Valley and central regions of Virginia. In addition to providing traditional banking services, the Bank operates a wealth management division under the name First Bank Wealth Management. First Bank also owns First Bank Financial Services, Inc., which invests in entities that provide investment services and title insurance.

This story originally appeared on Fintel.