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Premier Financial (PFC) Stock to Watch on 6.2% Dividend Yield
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Premier Financial Corp. (PFC - Free Report) is a solid dividend-yielding stock that investors may consider for their portfolios amid the expected economic slowdown in the near term.
This Defiance, OH-based holding company for Premier Bank and First Insurance Group, provides community banking and financial services to its customers.
PFC has been paying quarterly dividends on a regular basis and raising the same. The last hike of 3.3% to 31 cents per share was announced in January 2023. In the past five years, it increased dividends eight times, with an annualized dividend growth rate of 14.7%.
Considering last day’s closing price of $19.69 per share, the company’s current dividend yield stands at 6.21%. This is impressive compared with the industry’s average of 3.14%, in turn, attracting investors as it represents a steady income stream.
Premier Financial Corp. Price, Consensus and EPS Surprise
Is the Premier Financial stock worth a look to earn a high dividend yield? Let’s check the company's financials to understand the risks and rewards.
Apart from regular quarterly dividend payouts, PFC has a share repurchase program in place. In January 2021, the company’s board authorized the repurchase of 2 million shares. In January 2022, its board approved a rise in its repurchase authorization to up to 2 million shares with no expiration date. As of Jun 30, 2023, it had 1,199,634 shares remaining under the authorization.
PFC has been witnessing consistent organic growth. The company’s net revenues witnessed a compound annual growth rate (CAGR) of 23.8% over the last three years (2019-2022). The rise was mainly driven by solid loan and deposit balances. In the same time frame, net loans witnessed a CAGR of 32.5% and deposits saw a CAGR of 34%.
Supported by steady loan demand and high rates, along with the efforts to strengthen fee income. Premier Financial’s top-line growth is expected to continue in the near term.
With the Federal Reserve expected to keep interest rates high in the near term, Premier Financial’s net interest margin (NIM) is likely to keep rising (though the pace of growth will slow down on higher funding costs).
Despite near-term headwinds that include rising expenses and a tough operating environment, the PFC stock is fundamentally solid. In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 37.5% compared with the industry's growth of 15%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Therefore, income investors should keep this stock on their radar as this will help generate robust returns over time.
Other Bank Stocks With Solid Dividends
Banking stocks like BankUnited (BKU - Free Report) and Fifth Third Bancorp (FITB - Free Report) are worth a look as these too have robust dividend yields.
Considering the last day’s closing price, BankUnited’s dividend yield currently stands at 4.13%. In the past three months, shares of BKU have rallied 39.8%.
Based on the last day’s closing price, Fifth Third’s dividend yield currently stands at 5.12%. In the past three months, shares of FITB have gained 2.7%.
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Premier Financial (PFC) Stock to Watch on 6.2% Dividend Yield
Premier Financial Corp. (PFC - Free Report) is a solid dividend-yielding stock that investors may consider for their portfolios amid the expected economic slowdown in the near term.
This Defiance, OH-based holding company for Premier Bank and First Insurance Group, provides community banking and financial services to its customers.
PFC has been paying quarterly dividends on a regular basis and raising the same. The last hike of 3.3% to 31 cents per share was announced in January 2023. In the past five years, it increased dividends eight times, with an annualized dividend growth rate of 14.7%.
Considering last day’s closing price of $19.69 per share, the company’s current dividend yield stands at 6.21%. This is impressive compared with the industry’s average of 3.14%, in turn, attracting investors as it represents a steady income stream.
Premier Financial Corp. Price, Consensus and EPS Surprise
Premier Financial Corp. price-consensus-eps-surprise-chart | Premier Financial Corp. Quote
Is the Premier Financial stock worth a look to earn a high dividend yield? Let’s check the company's financials to understand the risks and rewards.
Apart from regular quarterly dividend payouts, PFC has a share repurchase program in place. In January 2021, the company’s board authorized the repurchase of 2 million shares. In January 2022, its board approved a rise in its repurchase authorization to up to 2 million shares with no expiration date. As of Jun 30, 2023, it had 1,199,634 shares remaining under the authorization.
PFC has been witnessing consistent organic growth. The company’s net revenues witnessed a compound annual growth rate (CAGR) of 23.8% over the last three years (2019-2022). The rise was mainly driven by solid loan and deposit balances. In the same time frame, net loans witnessed a CAGR of 32.5% and deposits saw a CAGR of 34%.
Supported by steady loan demand and high rates, along with the efforts to strengthen fee income. Premier Financial’s top-line growth is expected to continue in the near term.
With the Federal Reserve expected to keep interest rates high in the near term, Premier Financial’s net interest margin (NIM) is likely to keep rising (though the pace of growth will slow down on higher funding costs).
Despite near-term headwinds that include rising expenses and a tough operating environment, the PFC stock is fundamentally solid. In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 37.5% compared with the industry's growth of 15%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Therefore, income investors should keep this stock on their radar as this will help generate robust returns over time.
Other Bank Stocks With Solid Dividends
Banking stocks like BankUnited (BKU - Free Report) and Fifth Third Bancorp (FITB - Free Report) are worth a look as these too have robust dividend yields.
Considering the last day’s closing price, BankUnited’s dividend yield currently stands at 4.13%. In the past three months, shares of BKU have rallied 39.8%.
Based on the last day’s closing price, Fifth Third’s dividend yield currently stands at 5.12%. In the past three months, shares of FITB have gained 2.7%.