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BCB Bancorp: A 4.4% Dividend Yield With A Sub 35% Payout Ratio

Dec. 02, 2021 10:00 AM ETBCB Bancorp, Inc. (BCBP)8 Comments


  • BCB Bancorp appears to be cheap, trading at book value and at just 8 times its earnings.
  • The net interest income remains strong, but the loan book is geared towards commercial loans and multi-family loans.
  • The risk/reward ratio appears to be positive, but I'm not going long just yet.
  • The dividend yield is appealing as well, especially considering the payout ratio is rather low.
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Het uitzicht van de Skyline van de Stad van New York van Hoboken van Hoboken

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I like small regional banks and although they sometimes carry a higher risk due to being more geographically concentrated, the more focused approach sometimes helps to nip credit risks in the bud. BCB Bancorp (NASDAQ:BCBP) is headquartered in

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

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Comments (8)

Gorion profile picture
So overall a thrift like situation? How would you think about this vs Nycb? Similar multiple there
whatsfordinner profile picture
Do you think this is a merger candidate...to be gobbled up by a bigger fish/bank? One issue I try to say out of places like NJ on small banks. Thoughts?
@whatsfordinner Not the if but the when. Divy ok but better out there. when earnings get pressured they will sell. In the mean time they try to increase TB and reward themselves with salary and options.
@whatsfordinner There has been a steady bank consolidation over the past decade and a number of smaller banks have been takeovers. They appear to go for about 115-129 % of BV. Considering the stock price of BCBP and its payout ratio, it is not inconceivable that it could also be the acquiring bank.
@linkdonald Yes possible but they would have to start being aggressive in acquiring other banks and have something to offer the bank they are acquiring ex. future business model for growth.
Good writeup as usual but its just a credit bond substitute, with very similar risk-adjusted returns to, say, a garden variety junk bond CEF. Totally a bet that this management's underwriting is better than average. The market is chock full of similar community banks that focus on commercial loans trading at a 10-11% earnings yield.
I spotted this one about six months ago and took a small position. Will add more on dips. Probably not a barn burner but at yield and book value it's a good hold for income, reasonable growth and possible takeover.
@linkdonald I did also along with TBNK, PWOD, MSBI had done rea; well with FFIC and ESBK
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