"5%, 5% DG, last 3 years" - So, I went thru the Schwab screen in depth tonight.
The screen was: "4%-5% yield, 3-year average 5% dividend growth". The 3-year "average" is where this screen falls apart. Nevertheless, I sorted by yield, started with the highest 5%-er and looked at SA data, plus company website data when I was skeptical of the SA data.
The screen returned 39 companies, about 20 or so above 5%. I could only find one (1) that I was actually interested in, even tho it didn't strictly adhered to the rules I was after. I felt like I could still add to my watchlist. It was:
PFIS - Peoples Financial Services Co.
-CCC member - 8-year streak
-Yield 5.16% (as of today)
-Last 3 dividend increases, 51%, 5.1%, 5.4%. The very large last divided increase was the downfall of the "3-year average" part of the Schwab screen in general. I am not really interested in a company that increases its dividend once at large amount for some "reason" and then just reverts back to a 1%, 2%, 3% history.
-Net income Q2-25, $1.68, quarterly dividend .6175, so coverage seems good.
-ROE Q2-25 13.9
-TBV Q2-25 $38.75
Liquidity is an issue here. Per SA, the average volume is 21K, so thinly traded.
It's a small Pennsylvania bank and they just merged with another it seems and that might be why the last large dividend increase. Not enough DD yet to know.
I reviewed their last earning presentation and it looks impressive. Key metrics for a bank seem to be going in the right direction. Links to its dividend history (IR page) and the last earning presentation are below if interested.
I added it to my watch list but I can in no way recommend it other than a watchlist/DD project. Their next dividend announcement should be at the end of this month so I will watch that because they have been on the same dividend amount (.6175) for five quarters in a row so thats a concern for me already.
ir.psbt.com
s203.q4cdn.com
PS: I should say, VICI (which I own) and BMY (which I also own) showed up on the screen. TGT (which I don't own) did too, but their last 3 year raises were sub 2% so not sure what the Schwab screen is doing underneath. |
