NCC is diversified with a loyal customer base. The Banking sector should experience competitive pressure on margins over the next twelve months. A loyal customer base should mitigate the difficulties and expansion in higher growth areas should provide additional revenue replacing lower mortgage revenue.
NCC has maintained a high dividend payout ratio over the past decade, ranging from 31% to 58% of earnings. We anticipate a decrease in 2007 EPS to $3.00 due to the successful Dutch auction of 75M shares in 02/2007. The share count has increased and revenue should increase however, EPS is likely to decline. For 2007, the dividend yield will most likely remain above 4%. Institutional investors find the dividend history attractive.
For the private investor: NCC is a long term hold, low risk, dividend class stock with little price volatility.
NCC 1-yr chart
Disclosure: no conflicts.