TBNK - Territorial Bancorp's Dividend Yield Charm Diminished By Overvaluation
We expect Territorial Bancorp Inc.'s (TBNK) dividend to remain unchanged in 2019, at $1.14 per share. The reason why we're expecting no dividend growth is because we expect earnings, after adjusting for a high non-recurring capital gain in 1Q2019, to be almost the same as that booked in 2018. Nevertheless, our dividend expectation implies a high dividend yield of 3.92%. However, the attractiveness of the high dividend yield is negated by TBNK's valuation, as our analysis shows that TBNK has potential for price downside in the next six months.