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United Bankshares (UBSI) Rewards Investors, Hikes Dividend
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United Bankshares, Inc. (UBSI - Free Report) has announced a hike in its quarterly dividend for the 50th consecutive year. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend will be paid out on Jan 2, 2024, to shareholders of record as of Dec 8.
Richard M. Adams, Jr., UBSI’s chief executive officer, stated, "Fifty years of dividend growth is a testament to our proven track record as a high performing company with a low risk profile."
United Bankshares has a five-year annualized dividend growth of 1.38%. Currently, the company's payout ratio is 50% of earnings. Considering yesterday’s closing price of $30.06, its dividend yield is currently pegged at 4.92%, which is above the industry average of 3.19%.
Apart from regular dividend hikes, UBSI has a share repurchase program in place. It announced a buyback program in May 2022, under which it is authorized to repurchase up to 4.75 million shares with no expiration date. During the first nine months of 2022, it repurchased approximately 2.3 million shares of its common stock at an average price per share of $34.69.
It did not repurchase any shares under the buyback plan in the first nine months of 2023. As of Sep 30, 2023, the plan had approximately 4.37 million shares remaining under the current authorization.
UBSI maintains higher cash levels compared with the other long-term borrowings. Thus, regular dividend hikes is anticipated to be sustainable, even if economic situation worsens. Through this, the company will keep enhancing shareholders’ value.
Over the past three months, shares of UBSI have lost 4.8% compared with the industry’s decline of 8.3%.
Bank OZK (OZK - Free Report) had announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend was paid out on Oct 20 to shareholders of record as of Oct 30. This represents the 53rd consecutive quarter of a dividend hike.
Prior to the recent hike, OZK raised its dividend by 2.8% to 36 cents per share in July 2023. Also, the company has a five-year annualized dividend growth of 10.6%.
City Holding Company (CHCO - Free Report) announced a quarterly cash dividend of 71.5 cents per share, indicating an increase of 10% from the prior payout. The dividend was paid out on Oct 31 to shareholders of record as of Oct 13.
CHCO’s raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 4.5%. Currently, the company's payout ratio is 32% of earnings.
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United Bankshares (UBSI) Rewards Investors, Hikes Dividend
United Bankshares, Inc. (UBSI - Free Report) has announced a hike in its quarterly dividend for the 50th consecutive year. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend will be paid out on Jan 2, 2024, to shareholders of record as of Dec 8.
Richard M. Adams, Jr., UBSI’s chief executive officer, stated, "Fifty years of dividend growth is a testament to our proven track record as a high performing company with a low risk profile."
United Bankshares has a five-year annualized dividend growth of 1.38%. Currently, the company's payout ratio is 50% of earnings. Considering yesterday’s closing price of $30.06, its dividend yield is currently pegged at 4.92%, which is above the industry average of 3.19%.
Apart from regular dividend hikes, UBSI has a share repurchase program in place. It announced a buyback program in May 2022, under which it is authorized to repurchase up to 4.75 million shares with no expiration date. During the first nine months of 2022, it repurchased approximately 2.3 million shares of its common stock at an average price per share of $34.69.
It did not repurchase any shares under the buyback plan in the first nine months of 2023. As of Sep 30, 2023, the plan had approximately 4.37 million shares remaining under the current authorization.
UBSI maintains higher cash levels compared with the other long-term borrowings. Thus, regular dividend hikes is anticipated to be sustainable, even if economic situation worsens. Through this, the company will keep enhancing shareholders’ value.
Over the past three months, shares of UBSI have lost 4.8% compared with the industry’s decline of 8.3%.
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UBSI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Steps
Bank OZK (OZK - Free Report) had announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend was paid out on Oct 20 to shareholders of record as of Oct 30. This represents the 53rd consecutive quarter of a dividend hike.
Prior to the recent hike, OZK raised its dividend by 2.8% to 36 cents per share in July 2023. Also, the company has a five-year annualized dividend growth of 10.6%.
City Holding Company (CHCO - Free Report) announced a quarterly cash dividend of 71.5 cents per share, indicating an increase of 10% from the prior payout. The dividend was paid out on Oct 31 to shareholders of record as of Oct 13.
CHCO’s raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 4.5%. Currently, the company's payout ratio is 32% of earnings.