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ServisFirst Rewards Shareholders With 12% Hike in Cash Dividend
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ServisFirst Bancshares, Inc.’s (SFBS - Free Report) board of directors has approved an increase in the company’s quarterly dividend to 34 cents per share, marking a 12% hike from the prior payout. The increased amount will be paid out on Jan. 10, 2025, to shareholders on record as of Jan. 2.
The company has hiked its dividend every year since 2014. Before the latest hike, the company increased its dividend by 7.1% to 30 cents per share in December 2023. SFBS has a five-year annualized dividend growth of 14.58%. At present, its payout ratio is 31% of its earnings.
Based on its closing price of $94.41 as of Dec. 16, 2024, SFBS’ current dividend yield is 1.42%.
ServisFirst’s Liquidity & Capital Position
As of Sept. 30, 2024, SFBS’ debt (including federal funds purchased and other borrowings) aggregated to $1.61 billion. Cash and cash equivalents totaled $1.76 billion as of the same date. The higher level of cash compared with the company’s obligations depicts a strong balance sheet position. Hence, its capital distributions seem sustainable even if the economic situation worsens.
At the end of Sept. 30, 2024, the bank remained well-capitalized. The company’s Tier 1 capital to average assets ratio was 9.54%, common equity tier 1 capital to risk-weighted assets was 10.91% and Tier 1 capital to risk-weighted assets were 11.25%, and total capital to risk-weighted assets was 12.77%.
Our Take on SFBS
Steady dividend hikes highlight the company's operational strength and commitment to rewarding shareholders handsomely. This also boosts shareholders’ confidence in the stock.
Given its decent capital and liquidity positions, SFBS is expected to sustain its current capital distribution activities and enhance shareholder value.
SFBS’ Zacks Rank & Price Performance
Shares of ServisFirst have risen 57% compared with the industry’s growth of 33.5% over the past six months.
On Monday, SEI Investments Company’s (SEIC - Free Report) board of directors announced a semi-annual cash dividend of 49 cents per share, representing an increase of 6.5% from the prior payout. The dividend will be paid out on Jan. 8, 2025, to shareholders on record as of Dec. 27, 2024.
Prior to this, the company increased its dividend by 7% to 46 cents per share in December 2023. SEIC has raised its semi-annual dividend six times in the last five years. Also, it has a five-year annualized dividend growth rate of 6.94%. Currently, the company's payout ratio is 22% of earnings.
Last Month, Orange County Bancorp, Inc. (OBT - Free Report) announced a cash dividend of 25 cents per share, an increase of 8.7% from the prior payout. The dividend will be paid out on Dec. 16, 2024, to shareholders of record as of Dec. 4, 2024.
Before this, OBT increased its dividend by 15% to 23 cents per share in November 2022. It has a five-year annualized dividend growth of 5.75%. At present, its payout ratio is 18% of its earnings.
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ServisFirst Rewards Shareholders With 12% Hike in Cash Dividend
ServisFirst Bancshares, Inc.’s (SFBS - Free Report) board of directors has approved an increase in the company’s quarterly dividend to 34 cents per share, marking a 12% hike from the prior payout. The increased amount will be paid out on Jan. 10, 2025, to shareholders on record as of Jan. 2.
The company has hiked its dividend every year since 2014. Before the latest hike, the company increased its dividend by 7.1% to 30 cents per share in December 2023. SFBS has a five-year annualized dividend growth of 14.58%. At present, its payout ratio is 31% of its earnings.
Based on its closing price of $94.41 as of Dec. 16, 2024, SFBS’ current dividend yield is 1.42%.
ServisFirst’s Liquidity & Capital Position
As of Sept. 30, 2024, SFBS’ debt (including federal funds purchased and other borrowings) aggregated to $1.61 billion. Cash and cash equivalents totaled $1.76 billion as of the same date. The higher level of cash compared with the company’s obligations depicts a strong balance sheet position. Hence, its capital distributions seem sustainable even if the economic situation worsens.
At the end of Sept. 30, 2024, the bank remained well-capitalized. The company’s Tier 1 capital to average assets ratio was 9.54%, common equity tier 1 capital to risk-weighted assets was 10.91% and Tier 1 capital to risk-weighted assets were 11.25%, and total capital to risk-weighted assets was 12.77%.
Our Take on SFBS
Steady dividend hikes highlight the company's operational strength and commitment to rewarding shareholders handsomely. This also boosts shareholders’ confidence in the stock.
Given its decent capital and liquidity positions, SFBS is expected to sustain its current capital distribution activities and enhance shareholder value.
SFBS’ Zacks Rank & Price Performance
Shares of ServisFirst have risen 57% compared with the industry’s growth of 33.5% over the past six months.
Image Source: Zacks Investment Research
SFBS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Stocks Taking Similar Steps
On Monday, SEI Investments Company’s (SEIC - Free Report) board of directors announced a semi-annual cash dividend of 49 cents per share, representing an increase of 6.5% from the prior payout. The dividend will be paid out on Jan. 8, 2025, to shareholders on record as of Dec. 27, 2024.
Prior to this, the company increased its dividend by 7% to 46 cents per share in December 2023. SEIC has raised its semi-annual dividend six times in the last five years. Also, it has a five-year annualized dividend growth rate of 6.94%. Currently, the company's payout ratio is 22% of earnings.
Last Month, Orange County Bancorp, Inc. (OBT - Free Report) announced a cash dividend of 25 cents per share, an increase of 8.7% from the prior payout. The dividend will be paid out on Dec. 16, 2024, to shareholders of record as of Dec. 4, 2024.
Before this, OBT increased its dividend by 15% to 23 cents per share in November 2022. It has a five-year annualized dividend growth of 5.75%. At present, its payout ratio is 18% of its earnings.