Updated 3/6/25
Capital City Bank Group, Inc. (CCBG) is a well-established regional bank with deep roots in Florida and neighboring states. Having been in business for over 125 years, the bank has built a reputation for reliability, conservative financial management, and a strong commitment to its community.
For dividend investors, regional banks like CCBG can offer a unique mix of income potential and financial stability. While not as widely followed as the major banks, CCBG has shown resilience through different economic cycles, making it a stock worth analyzing from a dividend perspective.
Currently, the stock trades around $36 per share, with a market cap just north of $600 million. Its relatively low beta of 0.56 suggests it moves with less volatility than the broader market, which is often an appealing trait for income-focused investors.
Key Dividend Metrics
💰 Dividend Yield: 2.66% (forward)
📈 Dividend Growth: 5-year average yield of 2.39%
💵 Annual Dividend Rate: $0.96 per share
📊 Payout Ratio: 27.96% (low, indicating room for increases)
📅 Ex-Dividend Date: March 10, 2025
💳 Dividend Payment Date: March 24, 2025
Dividend Overview
CCBG’s dividend yield sits at 2.66%, which is solid for a regional bank but not the highest in the financial sector. That being said, the stability of the dividend is what stands out. A five-year average yield of 2.39% shows that it has maintained consistent payouts without extreme fluctuations.
What’s particularly encouraging is the payout ratio of just under 28%. This means the company is paying out less than a third of its earnings as dividends, leaving plenty of room for future increases. A low payout ratio also provides a cushion during economic downturns, reducing the risk of dividend cuts.
For those looking to capture the next dividend, the ex-dividend date is coming up on March 10, 2025. Investors who own shares before this date will be eligible for the upcoming payout.
Dividend Growth and Safety
One of the most important aspects of dividend investing is ensuring that payouts are sustainable. CCBG has maintained a steady dividend track record, but its growth has been relatively modest. Rather than aggressively raising payouts, the bank appears to be prioritizing financial flexibility, which is a prudent approach for a smaller regional lender.
Looking at its profitability metrics, CCBG’s return on equity (ROE) of 11.04% and return on assets (ROA) of 1.20% are both healthy figures, indicating that management is effectively deploying capital. Additionally, its profit margin of 22.92% suggests that the bank is operating efficiently.
For investors who prioritize dividend safety over aggressive growth, these numbers are reassuring. CCBG appears to be focused on long-term sustainability rather than chasing higher yields at the risk of financial strain.
Chart Analysis
Price Movement and Trend
The chart for CCBG shows a clear uptrend that began around mid-year, with the stock moving from a consolidation phase into a strong rally. The price pushed well above both the 50-day and 200-day moving averages, indicating a sustained bullish momentum. However, in recent weeks, the stock has pulled back slightly, testing key support levels near the 50-day moving average.
Currently, CCBG is trading around $36.09, with a recent high of $36.30 and a low of $35.76 for the day. While the stock remains above the 200-day moving average, the slope of the 50-day moving average has started to flatten, which suggests that bullish momentum may be slowing.
Moving Averages and Support Levels
The 50-day moving average (orange line) has served as a dynamic support level throughout most of the rally. However, it appears to be rolling over, hinting at possible short-term weakness. If the price breaks below this level, the next major support would be around the 200-day moving average (blue line), which currently sits closer to $33.
A breakdown below the 50-day moving average could indicate a deeper retracement, but if the price finds support and bounces, it may signal a continuation of the longer-term uptrend.
Volume Activity
Volume has been relatively stable in recent sessions, with 16,041 shares traded on the most recent day. However, looking at the broader picture, there was a noticeable spike in volume around July and October, suggesting increased institutional activity during those periods. Since then, volume has tapered off, indicating that fewer buyers are aggressively stepping in at current levels.
Lower volume during a pullback is typically a sign of consolidation rather than a full reversal. If volume picks up again on an upward move, it would suggest renewed buying interest. Conversely, a spike in volume on a downward break could confirm a more significant correction.
RSI and Momentum Indicators
The Relative Strength Index (RSI) has remained in a moderate range, avoiding extreme overbought or oversold conditions. Over the past few months, the RSI has trended downward slightly, reflecting the cooling momentum in the stock. It is not yet at a level that would indicate oversold conditions, meaning there could still be some room for further downside before a strong rebound occurs.
A drop in RSI below 30 would suggest that the stock is oversold and could be due for a bounce, while a move back above 70 would indicate strong upward momentum. For now, the indicator is neutral, suggesting that the stock is in a wait-and-see mode.
Recent Candlestick Patterns
The last five trading sessions have shown mixed signals. There have been some lower wicks on the candles, indicating buyers stepping in on dips, but no strong bullish engulfing patterns or clear reversal signals. The most recent candle has a relatively small body, suggesting indecision in the market.
If the next few candles show stronger bullish price action with longer lower wicks or a solid green close above the 50-day moving average, it could indicate a renewed uptrend. On the other hand, a close below recent lows would signal increasing bearish pressure.
Analyst Ratings
📈 Upgrades:
🟢 January 24, 2024 – A major brokerage firm upgraded CCBG from Neutral to Buy, increasing the price target to $37.50 from $32. The upgrade was based on the bank’s strong earnings performance and solid financial fundamentals. Analysts pointed to steady revenue growth and improving profitability as key reasons for their more optimistic stance.
📉 Downgrades:
🔴 July 29, 2024 – Another investment firm lowered its rating from Overweight to Neutral, adjusting the price target to $34 from $30. Analysts expressed concerns over valuation, noting that while the stock has performed well, it may be approaching fair value given the current macroeconomic conditions affecting regional banks.
🟠 November 15, 2023 – A separate research firm revised its rating from Buy to Neutral, trimming the price target to $32.50 from $33.50. The downgrade was driven by concerns over slowing growth in the regional banking sector and the potential impact of economic headwinds on future loan demand.
📊 Consensus Price Target:
The latest analyst estimates suggest a twelve-month price target of approximately $38.33, indicating a potential upside of about 8% from the current share price. This target reflects a balanced outlook, with some analysts seeing room for further growth while others are cautious about sector-specific risks.
Earnings Report Summary
Capital City Bank Group (CCBG) wrapped up the fourth quarter of 2024 with solid results, showing steady financial performance and a commitment to long-term stability.
The bank reported $13.1 million in net income, which translated to $0.77 per share in earnings. That’s a small but steady improvement from the same time last year when earnings per share came in at $0.70. It’s clear the company is maintaining consistent profitability, a reassuring sign for investors who value stability.
Net interest income, which is a key driver of bank profitability, rose to $41.2 million, slightly higher than the previous quarter’s $40.3 million. This suggests that the bank is managing its assets and liabilities well, even in a fluctuating rate environment.
One area that saw a slight dip was loan balances, which declined by about $16.1 million, or 0.6% on average, by the end of the quarter. This isn’t necessarily a red flag, as it could be due to factors like customers paying down loans faster or a cautious approach to lending in a higher-rate environment.
On the credit quality front, things remained stable. Net loan charge-offs came in at 25 basis points, and the allowance coverage ratio stood at 1.10%. These numbers indicate that the bank is managing risk well and isn’t seeing a major uptick in loan defaults.
One of the more exciting updates for income-focused investors is the bank’s dividend increase. The board approved a 4.4% hike, bringing the quarterly payout up to $0.24 per share, or $0.96 per year. With the stock’s recent price, that translates to a 2.6% dividend yield, which is a nice little boost for shareholders looking for steady income.
Overall, CCBG delivered another quarter of reliable performance, maintaining profitability while keeping risk in check. The modest dividend increase is a good signal that the company feels confident about its financial health heading into the next year.
Financial Health and Stability
Beyond the dividend itself, it’s important to assess the bank’s overall financial position. A strong balance sheet is crucial for ensuring that dividends remain intact, especially during economic downturns.
CCBG currently holds nearly $392 million in cash, compared to a total debt of about $82 million. This kind of liquidity suggests a strong position to handle any short-term financial challenges. Additionally, the company’s book value per share sits at $29.18, which means the stock is trading at a moderate premium to its intrinsic value.
From a revenue perspective, the bank has been growing steadily, with quarterly revenue up 9% year-over-year. Earnings growth has been even stronger, rising 11.7% over the same period. This kind of steady performance reinforces the idea that CCBG is on solid footing.
For dividend investors, financial strength isn’t just about numbers—it’s about long-term reliability. CCBG’s conservative approach to debt and cash management makes it a relatively safe choice in the regional banking space.
Valuation and Stock Performance
Evaluating CCBG’s valuation helps determine whether the stock is reasonably priced for investors looking to buy or add to a position.
The trailing price-to-earnings (P/E) ratio of 11.87 suggests the stock is trading at a reasonable multiple relative to earnings. The forward P/E is slightly lower at 11.79, meaning analysts expect earnings to remain steady or grow slightly.
One of the more useful valuation metrics for banks is price-to-book (P/B) ratio, which currently sits at 1.27. This means the stock is trading at a modest premium to its book value—fair for a well-managed regional bank.
Stock performance over the past year has been relatively stable, with a 52-week range of $25.45 to $40.86. The current price of around $36 places it near the upper half of that range, suggesting that while it’s not at a deep discount, it also hasn’t hit unsustainable highs.
For those with a long-term perspective, this valuation appears reasonable, especially given the bank’s steady earnings growth and strong financials.
Risks and Considerations
While CCBG offers stability, no investment is without risk. Here are a few factors that investors should keep in mind:
1️⃣ Interest Rate Impact – As with all banks, CCBG’s profitability is tied to interest rates. While rising rates generally improve net interest margins, they can also slow loan growth and increase credit risk.
2️⃣ Regional Exposure – Being a smaller regional bank means CCBG is more exposed to local economic conditions than national banks. Any slowdown in Florida’s economy could impact loan demand and credit quality.
3️⃣ Limited Trading Volume – With an average daily volume of around 25,000 shares, CCBG’s liquidity is lower than larger financial stocks. This means it could experience more price swings in times of market stress.
4️⃣ Competitive Pressures – Larger banks have more resources to compete on technology, lending, and customer acquisition. Regional banks must find ways to differentiate themselves to maintain growth.
While none of these risks are deal-breakers, they are worth considering when evaluating the stock’s long-term dividend potential.
Final Thoughts
For dividend investors seeking stability in the financial sector, Capital City Bank Group (CCBG) presents a compelling case. The company’s 2.66% dividend yield may not be the highest in the sector, but its low payout ratio, steady earnings growth, and strong balance sheet make it an attractive option for those who prioritize long-term income reliability.
The upcoming ex-dividend date on March 10, 2025, is something to note for those looking to capture the next payment. With solid financial health, a manageable debt load, and consistent revenue growth, CCBG appears well-positioned to continue delivering dividends without disruption.
Regional banks like CCBG may not be as flashy as larger financial institutions, but for those seeking a dependable dividend payer with conservative management, it’s certainly a stock worth watching.
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