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Northrim (NRIM) Rewards Investors With 7.9% Dividend Hike

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Northrim BanCorp (NRIM - Free Report) recently announced that its board of directors has approved a regular quarterly cash dividend of 41 cents per share. This represents an increase of 7.9% from its prior payout.

The dividend will be paid on Mar 18, to shareholders of record as on Mar 10, 2022. Prior to this, the company had hiked its dividend in August 2021 by 2.7% to 38 cents.

Based on the increased rate, the annual dividend comes to $1.64 per share, resulting in an annualized dividend yield of 3.79%, considering Northrim’s closing price of $43.26 as of Feb 25. The yield is impressive compared with the industry average of 2.03%. The yield is not only attractive for investors, but also represents a steady income stream.

Apart from regular dividend payouts, NRIM has a share repurchase plan in place. In January 2022, an expansion of its share repurchase program was approved, under which the company is authorized to repurchase up to $13 million worth of shares. Since inception of the stock repurchase plan, it has repurchased approximately 1.75 million shares.

These efforts reflect Northrim’s commitment to boost shareholder value through its strong cash-generation capabilities while retaining sufficient capital for growing organically through rise in core loan, fee and interest income, and the overall growth in earnings assets.

Over the past three months, shares of NRIM have gained 2.2% against the industry’s decline of 4.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

Northrim currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Stocks Undertaking Similar Actions

Over the past few months, several companies have rewarded their shareholders with dividend hikes. Some of these are Arbor Realty Trust, Inc. (ABR - Free Report) , Farmers National Banc Corp. (FMNB - Free Report) and Fidelity National Information Services Inc. (FIS - Free Report) .

Arbor Realty’s board of directors recently approved a 2.8% sequential hike in its quarterly cash dividend. The revised quarterly dividend now totals 37 cents per share. The amount will be paid out on Mar 18 to its shareholders of record as of Mar 4, 2022.

Prior to this hike, ABR had increased its dividend by 2.9% (from 35 cents to 36 cents per share) last October.

Farmers National announced a hike in its quarterly dividend. The bank announced a dividend of 16 cents per share, representing a 14.3% sequential hike and a 45% year-over-year hike. The dividend will be paid out on Mar 31 to its shareholders of record as of Mar 11, 2022.

The recent dividend hike marks the 7th consecutive quarter of an increase by Farmers National. Prior to this, FMNB hiked the dividend 27% to 14 cents per share.

Consistent with its updated capital-management strategy announced in November 2021, Fidelity hiked its quarterly common stock dividend by 21% from the prior-quarter’s payout to 47 cents per share in January this year. The new dividend will be paid out on Mar 29 to its shareholders of record as of Mar 25, 2022.

Since March 2012, Fidelity National has raised its dividend eight times. Its dividend was last hiked in February 2021 by 11% to 39 cents per share.