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HarborOne Bancorp (HONE) Raises Quarterly Dividend by 6.7%
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HarborOne Bancorp, Inc. (HONE - Free Report) announced a quarterly cash dividend of 8 cents per share. This reflects a 6.7% hike compared with the prior payout. The dividend will be paid out on Apr 24, 2024, to shareholders of record as of Apr 10.
The company has increased its dividend payout thrice in the past five years. It last increased its quarterly dividend by 7% to 7.5 cents per share in March 2023. Currently, HONE’s payout ratio is 48% of earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Based on its closing price of $10.66 as of Mar 28, HONE’s dividend yield is pegged at 3%. Its five-year annualized dividend growth is 33.33%.
Joseph F. Casey, president and CEO of HarborOne, said, “The dividend increase is supported by our current and projected earnings as we continue executing our business plan.”
The company has an ongoing share repurchase program too. The plan, announced in July 2023, authorized HarborOne to buy back up to 2.3 million shares. The plan is set to expire on Jun 30, 2024.
In 2023, HONE repurchased 1.2 million shares at an average cost of $10.04 per share. Prior to this, the company announced a repurchase plan in April 2022, which expired in April 2023.
As of Dec 31, 2023, 1.1 million shares remained available under the company’s current repurchase program.
HONE has a strong balance sheet. As of Dec 31, 2023, the company’s total cash and cash equivalents were $227.35 million, total loans amounted to $4.8 billion and Federal home loan borrowings long-term borrowings were $265.5 million. This indicates a decent liquidity position.
Its common equity Tier-1 capital ratio of 12% and total capital ratio of 13.1% are well above regulatory requirements.
Given its decent capital position and liquidity position, HONE is expected to sustain its current capital distribution activities and keep enhancing shareholder value.
In the past six months, shares of HarborOne Bancorp have risen 14.1% compared with the industry’s growth of 15.8%.
Last month, 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.
INDB 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.
Similarly, NorthEast Community Bancorp, Inc. (NECB - Free Report) has announced a huge increase 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 of record as of Apr 5.
Prior to this, NECB raised its quarterly cash dividend by 200% to 6 cents per share in 2021.
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HarborOne Bancorp (HONE) Raises Quarterly Dividend by 6.7%
HarborOne Bancorp, Inc. (HONE - Free Report) announced a quarterly cash dividend of 8 cents per share. This reflects a 6.7% hike compared with the prior payout. The dividend will be paid out on Apr 24, 2024, to shareholders of record as of Apr 10.
The company has increased its dividend payout thrice in the past five years. It last increased its quarterly dividend by 7% to 7.5 cents per share in March 2023. Currently, HONE’s payout ratio is 48% of earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Based on its closing price of $10.66 as of Mar 28, HONE’s dividend yield is pegged at 3%. Its five-year annualized dividend growth is 33.33%.
Joseph F. Casey, president and CEO of HarborOne, said, “The dividend increase is supported by our current and projected earnings as we continue executing our business plan.”
The company has an ongoing share repurchase program too. The plan, announced in July 2023, authorized HarborOne to buy back up to 2.3 million shares. The plan is set to expire on Jun 30, 2024.
In 2023, HONE repurchased 1.2 million shares at an average cost of $10.04 per share. Prior to this, the company announced a repurchase plan in April 2022, which expired in April 2023.
As of Dec 31, 2023, 1.1 million shares remained available under the company’s current repurchase program.
HONE has a strong balance sheet. As of Dec 31, 2023, the company’s total cash and cash equivalents were $227.35 million, total loans amounted to $4.8 billion and Federal home loan borrowings long-term borrowings were $265.5 million. This indicates a decent liquidity position.
Its common equity Tier-1 capital ratio of 12% and total capital ratio of 13.1% are well above regulatory requirements.
Given its decent capital position and liquidity position, HONE is expected to sustain its current capital distribution activities and keep enhancing shareholder value.
In the past six months, shares of HarborOne Bancorp have risen 14.1% compared with the industry’s growth of 15.8%.
Image Source: Zacks Investment Research
Currently, HONE 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
Last month, 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.
INDB 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.
Similarly, NorthEast Community Bancorp, Inc. (NECB - Free Report) has announced a huge increase 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 of record as of Apr 5.
Prior to this, NECB raised its quarterly cash dividend by 200% to 6 cents per share in 2021.