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Midland States (MSBI) Rewards Investors With 3.6% Dividend Hike
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Midland States Bancorp, Inc. (MSBI - Free Report) has declared a quarterly cash dividend of 29 cents per share. This represents an increase of 3.6% from the prior payout. The dividend will be paid out on Feb 18 to all shareholders as of record on Feb 11.
This increase represents the 22nd consecutive annual hike in Midland States’ quarterly cash dividend. Prior to this, the company had announced 4.5% rise to 28 cents per share in November 2021.
Based on the increased rate, the annual dividend comes to $1.16 per share, resulting in an annualized dividend yield of 4.03%, considering Midland States’ closing price of $28.80 as of Feb 1. The yield is impressive compared with the industry average of 1.98%. The yield is not only attractive to income investors but also represents a steady income stream.
Jeffrey G. Ludwig, president and CEO of Midland States, said, “We are pleased that our financial performance enables us to increase the amount of capital that we return to shareholders through our quarterly dividend while also retaining a sufficient amount of capital to increase our capital ratios to better support continued organic and acquired growth.”
Apart from regular dividend payouts, Midland States has a share repurchase plan in place. In September 2021, an expansion of share-repurchase program was approved, under which the company is authorized to repurchase up to $75 million worth of shares till December 2022.
These efforts reflect Midland States’ commitment to boost shareholder value through its strong cash-generation capabilities while retaining sufficient capital for growing organically. The company is growing inorganically as well. In June 2021, it acquired trust assets of ATG Trust Company, which boosted its wealth management business. These, along with past buyouts, are likely to keep supporting the company's financials.
Over the past one year, shares of MSBI have rallied 44.7% compared with the industry’s growth of 35.1%.
Over the past few months, several banks have rewarded shareholders with dividend hikes. Some of these are Farmers National Banc Corp. (FMNB - Free Report) , United Bankshares, Inc. (UBSI - Free Report) and The Community Financial Corporation .
Farmers National announced a 27.3% sequential hike in quarterly dividend to 14 cents per share. The dividend was paid out on Dec 31, 2021, to shareholders on record as of Dec 10.
This marked the sixth consecutive quarter of dividend hike by Farmers National. Prior to this, FMNB had hiked its dividend by 10% to 11 cents per share in February 2020.
United Bankshares announced a dividend of 36 cents per share, representing a hike of 2.9% from the prior payout. The dividend was paid out on Jan 3, 2022, to shareholders on record as of Dec 2, 2021.
Prior to this hike, UBSI had increased its quarterly dividend by 2.9% to 35 cents per share in November 2019.
Community Financial announced a 17% sequential hike in its quarterly cash dividend. TCFC paid a dividend of 17.5 cents per share on Jan 24 to its shareholders of record as of Jan 10.
In February 2021, Community Financial hiked its dividend by 20% to 15 cents per share.
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Midland States (MSBI) Rewards Investors With 3.6% Dividend Hike
Midland States Bancorp, Inc. (MSBI - Free Report) has declared a quarterly cash dividend of 29 cents per share. This represents an increase of 3.6% from the prior payout. The dividend will be paid out on Feb 18 to all shareholders as of record on Feb 11.
This increase represents the 22nd consecutive annual hike in Midland States’ quarterly cash dividend. Prior to this, the company had announced 4.5% rise to 28 cents per share in November 2021.
Based on the increased rate, the annual dividend comes to $1.16 per share, resulting in an annualized dividend yield of 4.03%, considering Midland States’ closing price of $28.80 as of Feb 1. The yield is impressive compared with the industry average of 1.98%. The yield is not only attractive to income investors but also represents a steady income stream.
Jeffrey G. Ludwig, president and CEO of Midland States, said, “We are pleased that our financial performance enables us to increase the amount of capital that we return to shareholders through our quarterly dividend while also retaining a sufficient amount of capital to increase our capital ratios to better support continued organic and acquired growth.”
Apart from regular dividend payouts, Midland States has a share repurchase plan in place. In September 2021, an expansion of share-repurchase program was approved, under which the company is authorized to repurchase up to $75 million worth of shares till December 2022.
These efforts reflect Midland States’ commitment to boost shareholder value through its strong cash-generation capabilities while retaining sufficient capital for growing organically. The company is growing inorganically as well. In June 2021, it acquired trust assets of ATG Trust Company, which boosted its wealth management business. These, along with past buyouts, are likely to keep supporting the company's financials.
Over the past one year, shares of MSBI have rallied 44.7% compared with the industry’s growth of 35.1%.
Midland currently sports a Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Banks Taking Similar Steps
Over the past few months, several banks have rewarded shareholders with dividend hikes. Some of these are Farmers National Banc Corp. (FMNB - Free Report) , United Bankshares, Inc. (UBSI - Free Report) and The Community Financial Corporation .
Farmers National announced a 27.3% sequential hike in quarterly dividend to 14 cents per share. The dividend was paid out on Dec 31, 2021, to shareholders on record as of Dec 10.
This marked the sixth consecutive quarter of dividend hike by Farmers National. Prior to this, FMNB had hiked its dividend by 10% to 11 cents per share in February 2020.
United Bankshares announced a dividend of 36 cents per share, representing a hike of 2.9% from the prior payout. The dividend was paid out on Jan 3, 2022, to shareholders on record as of Dec 2, 2021.
Prior to this hike, UBSI had increased its quarterly dividend by 2.9% to 35 cents per share in November 2019.
Community Financial announced a 17% sequential hike in its quarterly cash dividend. TCFC paid a dividend of 17.5 cents per share on Jan 24 to its shareholders of record as of Jan 10.
In February 2021, Community Financial hiked its dividend by 20% to 15 cents per share.