Monday, April 5, 2021

Three Banks Raising Dividends to Shareholders

As part of my review process, I monitor the list of dividend increases every week. I usually focus on the companies with at least a ten year history of annual dividend increases, in order to focus on more established dividend payers.

During the past week, there were three banks that raised dividends. While large banks cannot raise dividends until June 30, 2021, smaller banks have been delivering raises to their shareholders. Many of these banks also weathered the 2007 – 2009 financial crisis as well. 

The companies raising dividends last week include:

Bank OZK (OZK) provides various retail and commercial banking services.

Bank OZK raised its quarterly dividend by 0.90% to 28 cents/share.  This is a 3.70% raise over the dividend paid during the same time last year.  Over the past decade, Bank OZK has managed to boost dividends at an annualized rate of 21.80%.

Bank OZK is a dividend champion with a 26 year track record of annual dividend increases.

Between 2011 and 2020, Bank OZK managed to grow earnings from $1.47/share to $2.26/share. The bank is expected to earn $3.24/share in 2021.

The stock is selling for 12.54 times forward earnings and yields 2.76%.

Glacier Bancorp, Inc. (GBCI) operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States.

Glacier Bancorp raised is quarterly dividends by 3.30% to 31 cents/share. The new dividend is up by 6.90% over the payment during the same time last year. This marked the 10th consecutive annual dividend increase for this dividend contender. Over the past decade, the company has managed to increase dividends at an annualized rate of 8.50%.

Between 2011 and 2020, Glacier Bancorp managed to grow earnings from $0.24/share to $2.81/share. The bank is expected to earn $2.63/share in 2021.

The stock is selling for 22.24 times forward earnings and yields 2.12%.

Hingham Institution for Savings (HIFS) provides various financial products and services to individuals and businesses in the United States. 

Hingham Institution for Savings raised its quarterly dividend by 4.30% to 49 cents/share.  This is also a 16.67% increase over the dividend paid during the same time last year.

The bank has consistently increased regular quarterly cash dividends over the last twenty-six years. The Bank has also declared special cash dividends in each of the last twenty-six years, typically in the fourth quarter. Their dividend track record is based on declaration date.

Between 2011 and 2020, HIFS managed to grow earnings from $5.67/share to $23.25/share.  The bank earned $23.25/share in 2020. No forward earnings estimates exist for this bank, as it is not covered by Wall Street Analysts.

The stock is selling for 12 times earnings and yields 0.69%.

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