Cascading Dividends!

In light of the slow down in the financial sector, I set out to search for a bank stock that has recently increased its dividend. Low and behold, I found a small regional bank based in Oregon called Cascade!

The Board of Directors of Cascade Bancorp (CACB), approved payment of a $.10 per share
quarterly cash dividend, an increase of 11% over the prior quarter’s dividend. This regular dividend is payable on November 16, 2007, to shareholders of record as of November 9, 2007.

“In an environment of slowing real estate activity that triggered recent turmoil on Wall Street, Cascade continues to deliver solid financial results,” said Patricia L. Moss, President and CEO. Accordingly, the directors are pleased to increase the cash dividend payment and continue a solid dividend return to our shareholders.

Interestingly enough, Cascade is trading near it’s yearly low and currently has a dividend yield of 1.92%; which is paltry compared to its financial counterparts.

While Cascade’s P/E Ratio and Return on Equity both best the industry figures, the number that really jumps out is the Return on Assets. Cascade’s ROA is 2.01 on a 5-year average, while the industry as a whole is 1.29.

The Beta figure for Cascade is very promising at just 0.37, making it quite a bit less volatile than the market. However, looking at the most recent chart is rather discouraging. (Can we remember to buy low and sell high?)

While these figures are tempting, the lack of dividend yield and the fact that this bank lacks geographic diversification, make it simply a Dividend Money “watch” for the time being.

Cascade Bancorp and its wholly-owned subsidiary, Bank of the Cascades, operates in Oregon and Idaho markets. Founded in 1977, Bank of the Cascades offers full-service community banking through 33 branches in Central Oregon, Southern Oregon, Portland/Salem and Boise/Treasure Valley. The Bank has been rated among the top performing banks in the nation for the ninth consecutive year by Independent Community Bankers of America, as well as being named the 2007 top community bank in the Northwest by US Banker Magazine.


  1. That’s very interesting. I am wondering, us there much room for earnings growth in the regional bank market or are these plays mostly for longterm dividend yields and maybe the hope of a buy out at one point or another?

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