Jake Miller
Bendigo and Adelaide Bank (ASX:BEN) is a popular choice for investors looking to buy shares in the banking industry. The bank has a market capitalisation of AU$7.28 billion and a share price that has shown stability over the past year. BEN has a dividend yield of 4.9% and pays out two fully franked dividends annually, making it an attractive option for income-seeking investors. With a PE ratio of 15.19, the stock may be considered relatively expensive compared to its peers. While the bank has underperformed the Australian banking industry, it has exceeded the Australian market's returns over the past year. Bendigo and Adelaide Bank provides a range of financial services to retail customers and small to medium-sized businesses, including personal and business banking, financial planning, and investment products.
| Characteristics | Values |
|---|---|
| Overall consensus recommendation | Hold |
| Dividend yield | 4.9% |
| Total dividend paid last year | AU$0.63 |
| Share price | AU$12.84-AU$12.85 |
| Market capitalisation | AU$7.28bn |
| PE ratio | 15.19 |
| Volatility | Stable |
| Classification | Turnaround |
| Scrip-for-scrip rollover scheme of arrangement | 1 BBL share for every 2 FABS shares held at $5.22 |
| Merger | Former Adelaide Bank shareholders who obtained Bendigo Bank shares when the companies merged are eligible for scrip-for-scrip capital gains tax rollover relief. |
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What You'll Learn
Bendigo Bank's share price history
Bendigo and Adelaide Bank's share price history has been variable. The bank listed on the ASX on 4 February 1993. In December 1991, the rights issue was 1:5 at $2.00 per share. In November 1998, the rights issue was 1:6 at $3.75 per share. In February 2001, a special dividend of 15 cents per share was paid.
In November 2007, Bendigo Bank merged with Adelaide Bank. Former Adelaide Bank shareholders received 1.075 Bendigo Bank shares for each Adelaide Bank share they held. The most recent closing price I could find was $12.85, with a market capitalisation of AU$7.28bn. The PE ratio (price-to-earnings ratio) is 15.19, based on the previous 12 months of reported earnings. This means that the shares are relatively expensive. The overall consensus recommendation for Bendigo and Adelaide Bank is 'Hold'.
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$107.61 $150
Analyst recommendations
Bendigo and Adelaide Bank is covered by 32 analysts, 11 of whom submitted estimates of revenue or earnings used as inputs to a report. The bank's PE ratio, based on its reported earnings over the previous 12 months, is 15.19. The PE ratio, or price-to-earnings ratio, is one of the most popular valuation measures used by stock market investors. It is calculated by dividing a company's price per share by its earnings per share. In general terms, the higher the PE, the more expensive the stock.
Bendigo and Adelaide Bank's shares last closed at AU$12.85, with a market capitalisation of AU$7.28 billion. The bank has a trailing dividend yield of 4.9% and paid a total dividend of AU$0.63 last year. The bank has historically paid two fully franked dividends annually, generally in March and September.
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Dividend payments
Bendigo and Adelaide Bank (ASX:BEN) has a dividend yield of 4.9% based on the trailing twelve-month period. The bank paid a total dividend of AU$0.63 during this period. It generally pays shareholder dividends twice a year, in March and September.
The bank's dividend history shows that in December 1991, it issued a 1:5 Rights Issue at $2.00 per share. Shareholders could choose to pay in two instalments of $1.00 each, with the final payment due in May 1992. In November 1998, the bank issued a 1:6 Rights Issue at $3.75 per share. Again, shareholders had the option to pay in two instalments, with the final payment of $1.75 due in November 1999. These share rights were converted to Fully Paid Ordinary shares in December 1999.
In February 2001, Bendigo and Adelaide Bank paid a special dividend of 15 cents per share.
The bank's share price has shown stability over the past year, with a weekly volatility of 2%. Its shares last closed at AU$12.84-AU$12.85, giving it a market capitalisation of AU$7.28 billion. The PE ratio, a popular valuation measure, for the bank is 15.19, indicating that its stock may be relatively expensive.
Considering the dividend history and the bank's performance, the shares could be a good buy for income-focused investors seeking stable dividend payments. However, it is essential to conduct thorough research and consult professional financial advice before making any investment decisions.
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Market capitalisation
The market cap of Bendigo and Adelaide Bank was $7.28 billion as of the previous close price of AU$12.85 per share. The PE ratio, or price-to-earnings ratio, is a popular valuation measure used by stock market investors and is calculated by dividing a company's share price by its earnings per share. The PE ratio for Bendigo and Adelaide Bank was 15.19 based on its reported earnings over the past 12 months. This indicates that the stock is relatively expensive, as a higher PE ratio suggests that the stock is more expensive.
The dividend yield for Bendigo and Adelaide Bank was 4.9% over the trailing twelve-month period. The bank paid a total dividend of AU$0.63 during this period. The share price of Bendigo and Adelaide Bank has underperformed the ASX All Ordinaries Index by -2.62% over the past year. The overall consensus recommendation for the bank's shares is to "Hold".
In summary, while Bendigo and Adelaide Bank has a substantial market capitalisation and is one of the world's most valuable companies, its stock price has underperformed the market over the past year, and its dividend yield is relatively low compared to other investments. Therefore, it may be a good option for investors seeking stable, long-term returns, but there may be other investments with higher potential for capital gains.
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Share price volatility
However, it is important to note that the banking industry in Australia is facing headwinds due to expected interest rate cuts, which could compress margins in the medium term. This may impact the stability of the stock price in the future, potentially increasing volatility.
In terms of analyst coverage, BEN is covered by 32 analysts, with 11 of them providing estimates of revenue or earnings. The overall consensus recommendation for the stock is "Hold," indicating that analysts believe it is neither a strong buy nor a strong sell at the current price.
The PE ratio, a popular valuation measure, for BEN is 15.19, indicating that the stock may be relatively expensive compared to others. The PE ratio is calculated by dividing the share price by the earnings per share, and a higher PE ratio suggests a higher level of expense for investors.
Considering the stable volatility and the "Hold" recommendation, the share price volatility of Bendigo and Adelaide Bank appears relatively neutral. However, investors should carefully assess the potential impact of industry headwinds and consider their own risk tolerance and investment objectives before making any investment decisions.
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Frequently asked questions
Bendigo and Adelaide Bank Limited's (ASX:BEN) current share price is $12.84.
The overall consensus recommendation for Bendigo Bank shares is "Hold".
Bendigo Bank generally pays its shareholder dividends twice a year, in March and September.
The dividend yield for Bendigo Bank shares is 4.9%.
As of the previous close price of AU$12.85, Bendigo Bank had a market capitalisation of AU$7.28 billion.
