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Trinity Capital (TRIN) Announces Dividend Hike, Stock Gains

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Shares of Trinity Capital Inc. (TRIN - Free Report) gained 2.2% after the company announced a hike in the quarterly dividend. TRIN’s board of directors declared a cash dividend of 60 cents per share for the third quarter.

The amount consists of a regular quarterly dividend of 45 cents per share and a supplemental cash dividend of 15 cents. The regular quarterly dividend of 45 cents indicates an increase of 3 cents or 7.1% from the prior quarter.

The dividend will be paid out on Oct 14 to shareholders of record as of Sep 30, 2022.

Considering the last day’s closing price, TRIN’s dividend yield currently stands at 11.8%. The yield is attractive for income investors and represents a steady income stream.

Subject to board approval, TRIN plans to declare a special dividend of 15 cents per share again in the fourth quarter of 2022, aggregating 60 cents per share of special dividends in 2022.

As of Jun 30, 2022, Trinity Capital had $93.2 million in liquidity, including $13.2 million in cash and cash equivalents.

In the first half of 2022, the company reported net investment income per share of $1.02, which reflected a year-over-year improvement of 47.8%. Total investment income for the first six months of this year was $65.3 million, which improved 77.5% year over year.

Thus, given a robust liquidity position and decent earnings strength, the company is expected to continue with efficient capital deployment activities. By carrying out the same, it will keep enhancing shareholder value.

So far this year, shares of TRIN have declined 13% compared with a 12.1% fall of the industry it belongs to.

 

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Currently, TRIN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dividend Hikes by Other Companies

Essent Group Ltd. (ESNT - Free Report) announced that its board of directors sequentially hiked the quarterly cash dividend by 4.8% to 22 cents per common share. The dividend was paid out on Sep 12 to shareholders of record as of Sep 1, 2022.

Notably, Essent Group has ample liquidity and financial flexibility, with $619 million in cash and available investment for sale, and $400 million of unused credit facility capacity. A fortified balance sheet might aid ESNT in continuing dividend payments.

The Charles Schwab Corporation (SCHW - Free Report) declared a quarterly cash dividend of 22 cents per share, marking a 10% increase from the prior payout. The dividend was paid out on Aug 26 to shareholders of record as of Aug 12, 2022.

Apart from the dividend hike, Schwab replaced its previous share repurchase program of $1.8 billion. It is authorized to repurchase shares worth $15 billion under the new program. As of Jun 30, 2022, SCHW had 1.904 billion weighted-average common and common equivalent shares outstanding.


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