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NorthEast Community Bancorp (NECB) Hikes Dividend by 66.7%

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NorthEast Community Bancorp, Inc. (NECB - Free Report) has announced a huge hike in its quarterly cash dividend. The company has announced a dividend of 10 cents per share, representing a surge of 66.7% from the prior payout. The dividend will be paid out on May 6 to shareholders on record as of Apr 5.

Prior to this, the company raised its quarterly cash dividend by 200% to 6 cents per share in 2021. NECB’s annualized growth rate over the past five years is 34.5%, and the payout ratio is 8% of earnings. This indicates that the company retains ample earnings for reinvestment and future growth initiatives while still delivering attractive returns to shareholders.

Kenneth A. Martinek, Chairman and CEO of NorthEast Community Bancorp. Said, “The payment of dividends continues to represent one part of our long-term commitment to enhancing shareholder value.”

Further, in 2022, NCEB announced a special cash dividend of 18 cents per share.

NECB also has a share repurchase plan in place. Last May, the company announced its second share repurchase program, under which it is authorized to buy back 1.51 million shares. The company announced its first stock repurchase program in July 2022 and authorized the buyback of up to 1.6 million shares. This was completed in April 2023.

As of Dec 31, 2023, NorthEast Community Bancorp had almost 0.57 million shares available under its second repurchase program.

As of Dec 31, 2023, Northeast Community Bancorp had total cash and cash equivalents of $68.7 million, higher than borrowing of $64 million. Thus, given the strong liquidity position and earnings strength, the company will be able to continue its capital distribution activities and keep enhancing shareholder value.

Other Banks That Announced Dividend Hike

Independent Bank Corp’s (INDB - Free Report) board of directors announced a dividend of 57 cents per share. This reflects a 3.6% hike from the previous payout. The dividend will be paid out on Apr 5, 2024, to shareholders on record as of Apr 1.

The company has increased its dividends five times in the past five years. It last hiked its dividend by 7.8% in September 2022 to 55 cents per share. Currently, INDB’s payout ratio is 41% of earnings.

Guaranty Bancshares, Inc. (GNTY - Free Report) announced a quarterly cash dividend of 24 cents per share, representing a hike of 4.3% from the prior payout. The dividend will be paid out on Apr 10 to shareholders on record as of Mar 25.

Prior to this, GNTY increased its quarterly dividend by 4.5% to 23 cents per share. Over the past five years, the company raised its dividend seven times, with an annualized dividend growth of 9.8%. At present, the company's payout ratio is 36% of earnings.


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