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South Plains Financial (SPFI) Announces 7.7% Dividend Hike
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South Plains Financial, Inc. (SPFI - Free Report) recently announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 14 cents per share, which marks an increase of 7.7% from the prior payout. The dividend will be paid out on May 13 to shareholders of record as of Apr 29.
The company has increased its dividend seven times during the last five years.
Prior to the recent hike, SPFI increased its dividend by 8.3% to 13 cents per share in January 2023. Also, the company has a five-year annualized dividend growth of 50.82%.
Currently, its payout ratio is 21% of earnings. This indicates that it retains sufficient earnings for reinvestment and future growth initiatives while still delivering attractive returns to its shareholders.
Considering SPFI’s closing price of $26 on Apr 19, its dividend yield is currently pegged at 2.2%.
Apart from regular dividend payouts, South Plains Financial has an existing share repurchase program in place. This February, the company’s board of directors authorized the repurchase of up to $10 million worth of outstanding common stock. The program is set to expire on Feb 21, 2025. Prior to this, SPFI announced a share buyback plan in May 2023, with an authorization of $15 million.
SPFI maintains a solid liquidity position. As of Dec 31, 2023, the company had a total deposit of $3.6 billion, subordinated debt of $63.8 million, net loans held for investment of $3 billion and cash and cash equivalents (comprising cash and due from banks and interest-bearing deposits in banks) of $330.2 million. Given a robust capital and liquidity position, the company is expected to sustain its capital distribution activities. Through this, South Plains Financial will keep enhancing shareholder value.
Over the past six months, shares of South Plains Financial have gained 4%, underperforming the industry’s rally of 24%.
Earlier this month, Bank OZK (OZK - Free Report) announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 39 cents per share, an increase of 2.6% from the prior quarter. The dividend was paid on Apr 19 to shareholders on record as of Apr 12.
This represents the 55th consecutive quarter of a dividend hike by OZK. Prior to the recent hike, the company raised its dividend by 2.7% to 38 cents per share in January 2024.
Similarly, 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.
HONE 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.
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South Plains Financial (SPFI) Announces 7.7% Dividend Hike
South Plains Financial, Inc. (SPFI - Free Report) recently announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 14 cents per share, which marks an increase of 7.7% from the prior payout. The dividend will be paid out on May 13 to shareholders of record as of Apr 29.
The company has increased its dividend seven times during the last five years.
Prior to the recent hike, SPFI increased its dividend by 8.3% to 13 cents per share in January 2023. Also, the company has a five-year annualized dividend growth of 50.82%.
Currently, its payout ratio is 21% of earnings. This indicates that it retains sufficient earnings for reinvestment and future growth initiatives while still delivering attractive returns to its shareholders.
Considering SPFI’s closing price of $26 on Apr 19, its dividend yield is currently pegged at 2.2%.
Apart from regular dividend payouts, South Plains Financial has an existing share repurchase program in place. This February, the company’s board of directors authorized the repurchase of up to $10 million worth of outstanding common stock. The program is set to expire on Feb 21, 2025. Prior to this, SPFI announced a share buyback plan in May 2023, with an authorization of $15 million.
SPFI maintains a solid liquidity position. As of Dec 31, 2023, the company had a total deposit of $3.6 billion, subordinated debt of $63.8 million, net loans held for investment of $3 billion and cash and cash equivalents (comprising cash and due from banks and interest-bearing deposits in banks) of $330.2 million. Given a robust capital and liquidity position, the company is expected to sustain its capital distribution activities. Through this, South Plains Financial will keep enhancing shareholder value.
Over the past six months, shares of South Plains Financial have gained 4%, underperforming the industry’s rally of 24%.
Image Source: Zacks Investment Research
South Plains Financial currently 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, Bank OZK (OZK - Free Report) announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 39 cents per share, an increase of 2.6% from the prior quarter. The dividend was paid on Apr 19 to shareholders on record as of Apr 12.
This represents the 55th consecutive quarter of a dividend hike by OZK. Prior to the recent hike, the company raised its dividend by 2.7% to 38 cents per share in January 2024.
Similarly, 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.
HONE 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.