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3 Banks Stocks With Dividend Hikes in the Past Week to Watch

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Key Takeaways

  • Chemung Financial raised its dividend 6.3% to 34 cents per share, payable Oct. 1, 2025.
  • United Community Bank lifted its dividend 4.2% to 25 cents per share, payable Oct. 3, 2025.
  • M&T Bank boosted its dividend 11% to $1.50 per share, payable Sept. 30, 2025.

The U.S. markets began 2025 on a strong footing but have since experienced substantial volatility. Tariff-related pressures and ongoing geopolitical uncertainty remain headwinds, while expectations for a September FOMC rate cut have grown amid signs of a cooling labor market and the inflationary effects of trade policies.

In the past week, the S&P 500 has retreated even as the Dow Jones Industrial Average moved higher, underscoring the volatile performance across indices. Against this backdrop of fluctuating markets and economic uncertainty, dividend-paying stocks stand out as a potential source of stability and income. These companies often possess resilient business models and a long track record of profitability, which can help them weather volatility. By providing steady cash flows through dividends, they may serve as a defensive anchor for portfolios in uncertain times.

Hence, three such bank stocks — Chemung Financial Corporation (CHMG - Free Report) , United Community Bank (UCB - Free Report) , and M&T Bank (MTB - Free Report)  — stand out, all of which recently announced dividend hikes.

The above-mentioned banks have been increasing quarterly dividends regularly, thus enhancing shareholder value. Also, over the past year, these stocks have rallied more than 10%.

Price Performance

 

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3 Bank Stocks to Watch

Chemung Financial is a financial services holding company and operates 30 offices through its principal subsidiary, Chemung Canal Trust Company, a full-service community bank with full trust powers. As of June 30, 2025, it had $2.9 billion in assets.

On Aug. 19, CHMG announced a quarterly cash dividend of 34 cents per share, marking an increase of 6.3% from the prior payout. The dividend will be paid out on Oct. 1, 2025, to common stock shareholders of record as of Sept. 17, 2025.

The company has increased its dividend thrice in the past five years, with an annualized dividend growth rate of 3.09%. Chemung Financial has a dividend yield of 2.52% and a dividend payout ratio of 26%. 

CHMG Dividend Yield

 

Zacks Investment Research
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The Zacks Consensus Estimate for CHMG’s 2025 sales indicates a year-over-year rise of 16.4%, while that for earnings suggests an 18.9% increase. This Zacks Rank #1 (Strong Buy) company has a market cap of $240.8 million. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

United Community Bank is the financial holding company for United Community, offering a full range of banking, mortgage and wealth management services. As of June 30, 2025, UCB had $28.1 billion in assets and operated 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. 

On Aug. 14, UCB announced a quarterly cash dividend of 25 cents per share, representing a rise of 4.2% from the prior payout. The dividend will be paid out on Oct. 3, 2025 to shareholders of record as of Sept. 15.

The company has increased its dividend seven times in the past five years, with an annualized dividend growth rate of 6.51%. United Community Bank has a dividend yield of 3.07% and a dividend payout ratio of 39%. 

UCB Dividend Yield

 

Zacks Investment Research
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The Zacks Consensus Estimate for 2025 sales reflects a rise of 7.4% year over year, while earnings are expected to grow 14.8%. This Zacks Rank #2 (Buy) stock has a market cap of $3.79 billion.

M&T Bank operates in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia through more than 961 domestic banking offices. As of June 30, 2025, MTB had $211.6 billion of assets.

On Aug. 19, M&T Bank announced a quarterly cash dividend of $1.50 per share on its common stock, marking a hike of 11% from the prior payout. The dividend will be paid out Sept. 30, to shareholders of record as of Sept. 2, 2025.

The company has increased its dividend four times in the past five years, with an annualized dividend growth rate of 5.36%. MTB has a dividend yield of 2.84%. Further, it has a dividend payout ratio of 34%. 

MTB Dividend Yield

 

Zacks Investment Research
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The Zacks Consensus Estimate for MTB’s 2025 sales suggests year-over-year growth of 3.6%, while that for earnings indicates an 11.1% increase. This Zacks Rank #3 (Hold) company has a market cap of $29.8 billion. 


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