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5 Bank Stocks With Recent Dividend Hikes to Keep on Your Radar

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Key Takeaways

  • Five regional banks raised quarterly dividends in January as markets found support from strong Q4 results.
  • Hancock Whitney and peers lifted payouts by 4%-16.7%, reflecting sustained profitability & capital strength.
  • Sierra Bancorp and others offer dividend yields near 2%-3% while navigating ongoing macro uncertainty.

The U.S. markets began 2026 with a decent performance. Some of the lingering concerns, including subdued labor markets, persistent inflation, geopolitical tension and tariff and trade policy, continued to hurt investor sentiments. Nonetheless, impressive fourth-quarter results and a patient Federal Reserve offered support.
 
In January, the KBW Nasdaq Regional Banking Index jumped 6.5%. Given this, investors should focus on fundamentally solid banks, which offer attractive dividend yields and stand out as a potential source of stability and income.
 
Five banks that announced dividend hikes last week include Hancock Whitney Corporation (HWC - Free Report) , Hilltop Holdings (HTH - Free Report) , Tompkins Financial (TMP - Free Report) , OFG Bancorp (OFG - Free Report) and Sierra Bancorp (BSRR - Free Report) . These banks possess robust business models and an established track record of sustainability in terms of profitability, which helps them to cope with market uncertainties. With a consistent capital distribution, these banks provide investors with a steady cash flow even amid a challenging macro situation.

5 Bank Stocks to Watch

Hancock Whitney, headquartered in Gulfport, MS, offers banking services through full-service banking offices and automated teller machines (ATMs) located across the states of Mississippi, Alabama, Louisiana, Florida and Texas. Also, it has a loan & deposit production office in Nashville, TN and Atlanta, GA. As of Dec. 31, 2025, it had $35.5 billion in assets.

On Jan. 29, HWC announced a quarterly cash dividend of 50 cents per share, marking an increase of 11.1% from the prior payout. The dividend will be paid out on March 16 to shareholders of record as of March 5.

The company increased its dividend four times in the last five years, with an annualized growth rate of. It has a dividend yield of 2.62% and a dividend payout ratio of 31%.

HWC Dividend Yield
 

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The Zacks Consensus Estimate for HWC’s 2026 sales indicates a year-over-year rise of 5.4%, while that for earnings suggests 5.8% growth. Over the past month, HWC stock has rallied 3.6%. This Zacks Rank #3 (Hold) company has a market cap of $5.75 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hilltop Holdings, a financial holding company headquartered in Dallas, TX, provides a wide range of financial products and services. As of Dec. 31, 2025, the company had $15.8 billion in assets and operated through roughly 312 locations across 47 states.

On Jan. 29, HTH announced a quarterly cash dividend of 20 cents per share, representing a rise of 11% from the prior payout. The dividend will be paid out on Feb. 27, to shareholders of record as of Feb. 13, 2026.

The company has increased its dividend six times in the past five years, with an annualized dividend growth rate of 9.43%. Hilltop has a dividend yield of 1.92% and a dividend payout ratio of 27%.

HTH Dividend Yield
 

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Over the past month, HTH stock has rallied 9.5%. This Zacks Rank #1 stock has a market cap of $2.3 billion.

Tompkins Financial, a financial service holding company headquartered in Ithaca, NY, provides consumer and commercial banking, leasing, trust and investment management banking, insurance, and wealth management services. It operates through 54 banking offices across New York and Pennsylvania. As of Dec. 31, 2025, the company had $8.7 billion in assets.

On Jan. 30, Tompkins Financial announced a quarterly cash dividend of 67 cents per share on its common stock, marking a hike of 8.1% from the prior-year quarter. The dividend will be paid out on Feb. 22, 2026, to shareholders of record as of Feb. 13, 2026.

The company has increased its dividend five times in the past five years, with an annualized dividend growth rate of 3.38%. TMP has a dividend yield of 3.25%. Further, it has a dividend payout ratio of 41%.

TMP Dividend Yield
 

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Over the past month, TMP stock has gained 9.1%. The Zacks Consensus Estimate for TMP’s 2026 earnings indicates a 16.5% rise. This Zacks Rank #3 company has a market cap of $1.16 billion.

OFG Bancorp is a financial holding company headquartered in San Juan, Puerto Rico. Through its subsidiary Oriental Bank, it offers a comprehensive range of retail and commercial banking services, wealth management products, services and technology across Puerto Rico and the U.S. Virgin Islands. As of Dec. 31, 2025, the company had $12.4 billion in assets.

On Jan. 28, OFG announced a quarterly cash dividend of 35 cents per share, representing a rise of 16.7% from the prior payout. The dividend will be paid out on April 15, to shareholders of record as of March 31.

The company has increased its dividend eight times in the past five years, with an annualized dividend growth rate of 29.57%. OFG has a dividend yield of 2.98% and a dividend payout ratio of 26%.

OFG Dividend Yield
 

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This Zacks Rank #2 (Buy) company has a market cap of $1.8 billion.
 
Sierra Bancorp, headquartered in Porterville, CA, offers a wide variety of retail and commercial banking services through full-service branches located across the southern part of California. As of Sept. 30, 2025, it had $3.7 billion in assets.

On Jan. 30, BSRR announced a quarterly cash dividend of 26 cents per share, marking an increase of 4% from the prior payout. The dividend will be paid out on Feb. 17 to shareholders of record as of Feb. 9.

Sierra Bancorp has increased its dividend five times in the past five years, with an annualized dividend growth rate of 3.27%. Sierra Bancorp Financial has a dividend yield of 2.82% and a dividend payout ratio of 35%.

BSRR Dividend Yield
 

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The Zacks Consensus Estimate for BSRR’s 2025 sales indicates a year-over-year rise of 3.4%, while that for earnings suggests an 6.4% increase. BSRR stock has gained 5.9% over the past month. This Zacks Rank #3 company has a market cap of $470.9 million. 

 

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