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WAFD Rewards its Shareholders With a 4% Dividend Increase
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WaFd, Inc. (WAFD - Free Report) has increased its quarterly dividend. The company announced a quarterly cash dividend of 26 cents per share, marking an increase of 4% from the prior payout. This dividend will be paid out on Mar 8, 2024, to shareholders of record as of Feb 23, 2024.
Prior to this, WAFD had hiked its dividend by 4.2% to 25 cents per share on Mar 10, 2023. The company has increased its dividend payout five times in the past five years.
Also, the company has a five-year annualized dividend growth rate of 4.83%. Currently, WAFD's payout ratio is 29% of earnings.
Based on yesterday's closing price of $27.26, WaFd currently has a dividend yield of 3.82%, which is above the industry’s average of 3.30%.
Additionally, the bank has a share repurchase program in place. During the first fiscal quarter of 2024, WAFD repurchased 697,893 of its shares at an average price of $24.45 per share. As of Dec 31, 2023, 1.9 million shares remained available under the authorization.
Last month, WaFd announced that its merger deal with Luther Burbank Corporation has received all required approval from concerned regulators.
This merger, announced on Nov 13, 2022, will allow WAFD to expand its footprint in nine western states with the addition of 10 California branches of LBC. The transaction is expected to be completed by Feb 29, subject to the completion of the remaining conditions stated in the merger agreement.
The company had a total debt of $3.9 billion and cash and cash equivalents of $1.14 billion as of Dec 31, 2023. WaFd has a strong liquid position, which will allow the company to be consistent in its dividend payouts. Also, the bank is focused on expanding through strategic buyouts, which will likely keep supporting the financials. However, the unstable macroeconomic backdrop remains a near-term concern.
In the past 12 months, shares of WAFD have lost 26.6% compared with the industry’s 20.9% decline.
Earlier this month, Southside Bancshares, Inc. (SBSI - Free Report) announced a quarterly cash dividend of 36 cents per share, which is 2.9% higher than the prior payout. This dividend will be paid out on Feb 29, 2024, to shareholders on record as of Feb 15.
SBSI had earlier hiked its dividend by 2.9% to 35 cents per share in February 2023. The current dividend marks the fourth hike in the past three years. Also, the company has five-year annualized dividend growth of 3.45%. Currently, SBSI's payout ratio is 49% of earnings.
In January 2024, Bank OZK (OZK - Free Report) announced a hike in its quarterly dividend. It declared a quarterly cash dividend of 38 cents per share, marking an increase of 2.7% from the prior quarter. The dividend was paid out on Jan 23 to shareholders of record as of Jan 16.
Prior to the recent hike, OZK raised its dividend by 2.8% to 37 cents per share in October 2023. Also, it has five-year annualized dividend growth of 10.6%. Currently, OZK's payout ratio is 25% of earnings.
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WAFD Rewards its Shareholders With a 4% Dividend Increase
WaFd, Inc. (WAFD - Free Report) has increased its quarterly dividend. The company announced a quarterly cash dividend of 26 cents per share, marking an increase of 4% from the prior payout. This dividend will be paid out on Mar 8, 2024, to shareholders of record as of Feb 23, 2024.
Prior to this, WAFD had hiked its dividend by 4.2% to 25 cents per share on Mar 10, 2023. The company has increased its dividend payout five times in the past five years.
Also, the company has a five-year annualized dividend growth rate of 4.83%. Currently, WAFD's payout ratio is 29% of earnings.
Based on yesterday's closing price of $27.26, WaFd currently has a dividend yield of 3.82%, which is above the industry’s average of 3.30%.
Additionally, the bank has a share repurchase program in place. During the first fiscal quarter of 2024, WAFD repurchased 697,893 of its shares at an average price of $24.45 per share. As of Dec 31, 2023, 1.9 million shares remained available under the authorization.
Last month, WaFd announced that its merger deal with Luther Burbank Corporation has received all required approval from concerned regulators.
This merger, announced on Nov 13, 2022, will allow WAFD to expand its footprint in nine western states with the addition of 10 California branches of LBC. The transaction is expected to be completed by Feb 29, subject to the completion of the remaining conditions stated in the merger agreement.
The company had a total debt of $3.9 billion and cash and cash equivalents of $1.14 billion as of Dec 31, 2023. WaFd has a strong liquid position, which will allow the company to be consistent in its dividend payouts. Also, the bank is focused on expanding through strategic buyouts, which will likely keep supporting the financials. However, the unstable macroeconomic backdrop remains a near-term concern.
In the past 12 months, shares of WAFD have lost 26.6% compared with the industry’s 20.9% decline.
Image Source: Zacks Investment Research
Currently, WAFD carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Other Banks Taking Similar Steps
Earlier this month, Southside Bancshares, Inc. (SBSI - Free Report) announced a quarterly cash dividend of 36 cents per share, which is 2.9% higher than the prior payout. This dividend will be paid out on Feb 29, 2024, to shareholders on record as of Feb 15.
SBSI had earlier hiked its dividend by 2.9% to 35 cents per share in February 2023. The current dividend marks the fourth hike in the past three years. Also, the company has five-year annualized dividend growth of 3.45%. Currently, SBSI's payout ratio is 49% of earnings.
In January 2024, Bank OZK (OZK - Free Report) announced a hike in its quarterly dividend. It declared a quarterly cash dividend of 38 cents per share, marking an increase of 2.7% from the prior quarter. The dividend was paid out on Jan 23 to shareholders of record as of Jan 16.
Prior to the recent hike, OZK raised its dividend by 2.8% to 37 cents per share in October 2023. Also, it has five-year annualized dividend growth of 10.6%. Currently, OZK's payout ratio is 25% of earnings.