Arrow Financial: A Dividend Champion And Undervalued Community Bank

Arrow Financial Corporation (AROW) is the third undervalued community bank that I am highlighting. This bank is a Dividend Champion and has shown up in my monthly series on these stocks. The bank ranks in the top half of my dividend growth ranking model for Dividend Champions. It could be ranked higher, but the trailing 5-year and 10-year dividend growth rates are comparatively low. However, the bank has a low valuation, low beta, and low payout ratio, which are attractive from the perspective of dividend safety and volatility. In addition, the bank showed up as one of five banks passing several screens assessing dividend, dividend safety, valuation, and volatility. This bank is conservatively run and presently undervalued and the yield is roughly 3%. I view it as a long-term buy.

Please read the complete article at my profile on Seeking Alpha.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s