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Investar Holding (ISTR) Announces 5% Increase in Dividend
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Investar Holding Corporation (ISTR - Free Report) announced a sequential dividend hike. The company declared a quarterly cash dividend of 10 cents per share, reflecting a rise of 5% from the prior payout. The dividend will be paid out on Jul 31, to shareholders of record as of Jul 3.
Prior to the current hike, the company increased its dividend by 5.6% to 9.5 cents per share in September 2022. ISTR raised its quarterly dividend 13 times in the last five years. Also, it has a five-year annualized dividend growth of 21.1%. Currently, the company's payout ratio is 15% of earnings.
Considering the last day’s closing price of $11.88, Investar Holding's dividend yield currently stands at 3.2%, which is impressive compared with the industry average of 2.99%.
Apart from the regular dividend payments, ISTR has a share repurchase program in place. In April 2022 and September 2022, the company announced additional 400,000 and 300,000 shares, respectively, of common stock to repurchase. As of Mar 31, 2023, the company paid $0.9 million to repurchase 45,975 shares and had 340,739 shares remaining under the repurchase authorization.
Moreover, ISTR’s revenues witnessed a compound annual growth rate of 15.1% over the last five years (2018-2022), mainly driven by improving net loan balances, swap termination and other fee income. This underlines its organic strength.
Investar Holding has been growing through strategic business expansion activities over the past several years. In April 2021, it acquired Cheaha Bank, which had four branch locations in Alabama. Also, as of Dec 31, 2022, the company has opened 14 de novo branches, completed seven whole bank acquisitions, and acquired two branch locations. Product and balance sheet diversification, stemming from such expansion activities, will likely support its financials.
Supported by a decent balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, Investar Holding will keep enhancing shareholder value.
Over the past three months, shares of ISTR have declined 21.8% against the industry’s rise of 3.6%.
Image Source: Zacks Investment Research
Investar Holding currently carries a Zacks Rank #5 (Strong Sell).
Over the past few months, Columbia Banking System, Inc. (COLB - Free Report) and Bank OZK (OZK - Free Report) announced an increase in their quarterly dividend payouts.
COLB declared a cash dividend of 36 cents per share, marking a 20% hike from the prior payout. The amount was paid out on Jun 15 to shareholders of record on May 31.
Prior to the current hike, the company increased its dividend by 7.1% to 30 cents per share in September 2021. COLB raised its quarterly dividend five times in the last five years.
Bank OZK declared a cash dividend of 35 cents per share, marking a 2.9% increase from the prior payout. The dividend was paid out on Apr 21 to shareholders of record as of Apr 14.
This represents the 51st consecutive quarter of dividend hike by Bank OZK. Prior to this, OZK hiked its dividend by 3% to 34 cents per share in January 2023.
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Investar Holding (ISTR) Announces 5% Increase in Dividend
Investar Holding Corporation (ISTR - Free Report) announced a sequential dividend hike. The company declared a quarterly cash dividend of 10 cents per share, reflecting a rise of 5% from the prior payout. The dividend will be paid out on Jul 31, to shareholders of record as of Jul 3.
Prior to the current hike, the company increased its dividend by 5.6% to 9.5 cents per share in September 2022. ISTR raised its quarterly dividend 13 times in the last five years. Also, it has a five-year annualized dividend growth of 21.1%. Currently, the company's payout ratio is 15% of earnings.
Considering the last day’s closing price of $11.88, Investar Holding's dividend yield currently stands at 3.2%, which is impressive compared with the industry average of 2.99%.
Apart from the regular dividend payments, ISTR has a share repurchase program in place. In April 2022 and September 2022, the company announced additional 400,000 and 300,000 shares, respectively, of common stock to repurchase. As of Mar 31, 2023, the company paid $0.9 million to repurchase 45,975 shares and had 340,739 shares remaining under the repurchase authorization.
Moreover, ISTR’s revenues witnessed a compound annual growth rate of 15.1% over the last five years (2018-2022), mainly driven by improving net loan balances, swap termination and other fee income. This underlines its organic strength.
Investar Holding has been growing through strategic business expansion activities over the past several years. In April 2021, it acquired Cheaha Bank, which had four branch locations in Alabama. Also, as of Dec 31, 2022, the company has opened 14 de novo branches, completed seven whole bank acquisitions, and acquired two branch locations. Product and balance sheet diversification, stemming from such expansion activities, will likely support its financials.
Supported by a decent balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, Investar Holding will keep enhancing shareholder value.
Over the past three months, shares of ISTR have declined 21.8% against the industry’s rise of 3.6%.
Image Source: Zacks Investment Research
Investar Holding currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Other Banks Taking Similar Steps
Over the past few months, Columbia Banking System, Inc. (COLB - Free Report) and Bank OZK (OZK - Free Report) announced an increase in their quarterly dividend payouts.
COLB declared a cash dividend of 36 cents per share, marking a 20% hike from the prior payout. The amount was paid out on Jun 15 to shareholders of record on May 31.
Prior to the current hike, the company increased its dividend by 7.1% to 30 cents per share in September 2021. COLB raised its quarterly dividend five times in the last five years.
Bank OZK declared a cash dividend of 35 cents per share, marking a 2.9% increase from the prior payout. The dividend was paid out on Apr 21 to shareholders of record as of Apr 14.
This represents the 51st consecutive quarter of dividend hike by Bank OZK. Prior to this, OZK hiked its dividend by 3% to 34 cents per share in January 2023.