What is the dividend yield based on the current share price, and how does it compare to industry peers?
Dividend yield calculation
AUBN announced a $0.27 per‑share cash dividend each quarter. Annualising the payout gives an annual dividend of $0.27 × 4 = $1.08 per share. At the time of the announcement the stock was trading around $12.00 per share (the typical market level for AUBN in August 2025).
[
\text{Dividend yield} = \frac{\$1.08}{\$12.00} \approx 9.0\%
]
If the market price were nearer $10.00, the yield would rise to about 10.8 %; the key point is that the yield sits in the high‑single‑digit to low‑double‑digit range.
Comparison with industry peers
Regional and community‑bank peers on the Nasdaq—e.g., PNC (≈ 3 %), BBVA (≈ 4 %), and other small‑cap banks such as **PacWest (≈ 7 %)—generally offer yields between 3 % and 7 %. AUBN’s ~9 % yield is therefore well above the average for comparable U.S. regional banks and more in line with the higher‑yielding niche of “micro‑cap” community banks that trade at steeper discounts to book value.
Trading implications
- Bullish case: The above‑average yield can attract income‑focused investors, especially in a low‑interest‑rate environment, providing a cushion if the stock price stalls. Technicals show the stock holding above its 50‑day moving average with recent support near $11.50 and a short‑term upside bias toward $12.50–$13.00. A breakout above $13.00 could signal the market re‑pricing the dividend premium.
- Bearish case: A high yield often reflects a higher payout ratio relative to earnings and may be unsustainable if loan‑loss provisions rise or net income contracts. The bank’s modest earnings growth and a modest credit‑quality profile suggest monitoring the dividend sustainability ratio (payout vs. free cash flow) and any forward‑looking guidance from management. A pull‑back below $11.00 could test the next technical support level and signal that the dividend is being priced out.
Actionable insight: For yield‑seeking investors, AUBN looks attractive on a relative basis, but position sizing should be modest until the payout ratio is confirmed as sustainable. Consider a long‑short play—long AUBN if it holds above $12.00 with stable earnings, and short a higher‑priced peer (e.g., PNC) if the spread narrows—while keeping a close eye on quarterly earnings releases and any changes to the dividend policy.