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Independent Bank Corp (INDB) Announces 3.6% Dividend Hike
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Independent Bank Corp’s (INDB - Free Report) board of directors announced a dividend of 57 cents per share. This reflected a 3.6% hike from the previous payout. The dividend will be paid out on Apr 5, 2024, to shareholders of record as of Apr 1.
The company has increased its dividend payout five times in the past five years. It last increased its dividend by 7.8% to 55 cents per share in December 2022. Currently, INDB’s payout ratio is 41% of earnings. This indicates that it retains ample earnings for reinvestment and future growth initiatives while still delivering attractive returns to shareholders.
Based on its closing price of $51.43 as of Mar 21, 2024, INDB’s dividend yield is pegged at 4.32%. Its five-year annualized dividend growth is 5.69%.
Jeffrey Tengel, CEO of Independent Bank Corp, said, “The 4% increase in our dividend is a reflection of the company’s strong capital and long-term value creation for our shareholders.”
The company has an active repurchase plan in place, which was announced in December 2023. The plan authorizes INDB to buy back up to 1.1 million shares, reflecting 5% of its outstanding common stock. The plan is set to expire on Dec 31, 2024.
In 2023, it repurchased 0.3 million shares at an average price of $17.27 per share. Prior to this, Independent Bank Corp announced a repurchase plan in December 2022, which expired on Dec 31, 2023.
INDB has a strong balance sheet. As of Dec 31, 2023, the company’s total cash and cash equivalents were $169.8 million, total loans amounted to $3.8 billion and other borrowings were $50 million. This indicates a decent liquidity position.
Considering its common equity Tier-1 capital ratio of 11.21% and total capital ratio of 12.46% being well above regulatory requirements, it has a decent capital position to continue paying an attractive dividend.
Given its decent capital position and liquidity position, INDB is expected to sustain current capital distribution activities in the future and keep enhancing shareholder value.
In the past six months, shares of Independent Bank Corp have risen 6.7% compared with the industry’s growth of 12.6%.
This week, JPMorgan Chase & Co. (JPM - Free Report) increased its quarterly dividend to $1.15 per share, representing a 9.5% hike from the prior payout. The dividend will be paid out on Apr 30, 2024, to shareholders of record as of Apr 5.
Prior to this, JPM had hiked its dividend by 5% to $1.05 per share in September 2023. It has increased its dividend payout four times in the past five years.
Earlier this month, Guaranty Bancshares, Inc. (GNTY - Free Report) announced a quarterly cash dividend of 24 cents per share, marking an increase of 4.3% from the prior figure. This dividend will be paid out on Apr 10, 2024, to shareholders of record as of Mar 25.
Prior to this, GNTY had hiked its dividend by 4.5% to 23 cents per share in March 2023. The company has increased its dividend payout seven times in the past five years.
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Independent Bank Corp (INDB) Announces 3.6% Dividend Hike
Independent Bank Corp’s (INDB - Free Report) board of directors announced a dividend of 57 cents per share. This reflected a 3.6% hike from the previous payout. The dividend will be paid out on Apr 5, 2024, to shareholders of record as of Apr 1.
The company has increased its dividend payout five times in the past five years. It last increased its dividend by 7.8% to 55 cents per share in December 2022. Currently, INDB’s payout ratio is 41% of earnings. This indicates that it retains ample earnings for reinvestment and future growth initiatives while still delivering attractive returns to shareholders.
Based on its closing price of $51.43 as of Mar 21, 2024, INDB’s dividend yield is pegged at 4.32%. Its five-year annualized dividend growth is 5.69%.
Jeffrey Tengel, CEO of Independent Bank Corp, said, “The 4% increase in our dividend is a reflection of the company’s strong capital and long-term value creation for our shareholders.”
The company has an active repurchase plan in place, which was announced in December 2023. The plan authorizes INDB to buy back up to 1.1 million shares, reflecting 5% of its outstanding common stock. The plan is set to expire on Dec 31, 2024.
In 2023, it repurchased 0.3 million shares at an average price of $17.27 per share. Prior to this, Independent Bank Corp announced a repurchase plan in December 2022, which expired on Dec 31, 2023.
INDB has a strong balance sheet. As of Dec 31, 2023, the company’s total cash and cash equivalents were $169.8 million, total loans amounted to $3.8 billion and other borrowings were $50 million. This indicates a decent liquidity position.
Considering its common equity Tier-1 capital ratio of 11.21% and total capital ratio of 12.46% being well above regulatory requirements, it has a decent capital position to continue paying an attractive dividend.
Given its decent capital position and liquidity position, INDB is expected to sustain current capital distribution activities in the future and keep enhancing shareholder value.
In the past six months, shares of Independent Bank Corp have risen 6.7% compared with the industry’s growth of 12.6%.
Image Source: Zacks Investment Research
Currently, INDB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks That Announced Dividend Hike
This week, JPMorgan Chase & Co. (JPM - Free Report) increased its quarterly dividend to $1.15 per share, representing a 9.5% hike from the prior payout. The dividend will be paid out on Apr 30, 2024, to shareholders of record as of Apr 5.
Prior to this, JPM had hiked its dividend by 5% to $1.05 per share in September 2023. It has increased its dividend payout four times in the past five years.
Earlier this month, Guaranty Bancshares, Inc. (GNTY - Free Report) announced a quarterly cash dividend of 24 cents per share, marking an increase of 4.3% from the prior figure. This dividend will be paid out on Apr 10, 2024, to shareholders of record as of Mar 25.
Prior to this, GNTY had hiked its dividend by 4.5% to 23 cents per share in March 2023. The company has increased its dividend payout seven times in the past five years.