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Northrim (NRIM) Rewards Investors With a 22% Dividend Hike
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Northrim BanCorp Inc. (NRIM - Free Report) has announced that its board of directors approved a regular quarterly cash dividend of 50 cents per share. This represents a jump of 22% from its prior payout.
The dividend will be paid out on Sep 16 to shareholders of record as on Sep 8. Prior to this, the company had hiked its dividend in February 2022 by 7.9% to 41 cents. In fact, NRIM has increased its dividend 11 times in the last five years.
Based on the increased rate, the annual dividend comes to $2 per share. This results in an annualized dividend yield of 4.96%, considering Northrim’s yesterday’s closing price of $40.32. The yield is impressive compared with the industry average of 2.39%. The yield is not only attractive for investors, but also represents a steady income stream.
Apart from regular dividend payouts, NRIM has been rewarding shareholders with a share repurchase program. This January, an expansion of its share repurchase program was approved, under which the company was authorized to repurchase up to 300,000 shares. This authorization has been completed as of Jun 30, 2022. Since inception of the stock buyback plan, it has repurchased more than 1.75 million shares.
The company has a strong balance sheet position, with no debt as of Jun 30, 2022. Thus, NRIM’s efforts to boost shareholder value seem sustainable on the back of solid earnings strength.
Through its strong cash-generation capabilities, the company is not only rewarding shareholders but also retaining sufficient capital for growing organically. Rise in core loan balance, higher fee and interest income, and increasing interest rates will keep supporting Northrim’s financials.
So far this year, shares of NRIM have lost 7.3% compared with the industry’s fall of 20.8%.
Over the past month, many banks including United Community Banks, Inc. (UCBI - Free Report) and Stock Yards Bancorp, Inc. (SYBT - Free Report) have announced an increase in their quarterly dividend payouts.
United Community Banks’ board of directors approved a quarterly cash dividend of 22 cents per share, marking a sequential hike of 4.7%. The dividend will be paid out on Oct 5 to shareholders on record as on Sep 15, 2022.
Prior to this, UCBI hiked its dividend by 5% to 21 cents per share in February 2022. In fact, in the last five years, the bank increased its dividend nine times.
Stock Yards Bancorp’s board of directors announced a dividend of 29 cents per share, representing a hike of 3.6% from the prior payout. The dividend will be paid out on Oct 3 to stockholders of record as on Sep 19, 2022.
SYBT has a track record of consistently raising dividends. Since 2012, the company has hiked its dividend 15 times.
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Northrim (NRIM) Rewards Investors With a 22% Dividend Hike
Northrim BanCorp Inc. (NRIM - Free Report) has announced that its board of directors approved a regular quarterly cash dividend of 50 cents per share. This represents a jump of 22% from its prior payout.
The dividend will be paid out on Sep 16 to shareholders of record as on Sep 8. Prior to this, the company had hiked its dividend in February 2022 by 7.9% to 41 cents. In fact, NRIM has increased its dividend 11 times in the last five years.
Based on the increased rate, the annual dividend comes to $2 per share. This results in an annualized dividend yield of 4.96%, considering Northrim’s yesterday’s closing price of $40.32. The yield is impressive compared with the industry average of 2.39%. The yield is not only attractive for investors, but also represents a steady income stream.
Apart from regular dividend payouts, NRIM has been rewarding shareholders with a share repurchase program. This January, an expansion of its share repurchase program was approved, under which the company was authorized to repurchase up to 300,000 shares. This authorization has been completed as of Jun 30, 2022. Since inception of the stock buyback plan, it has repurchased more than 1.75 million shares.
The company has a strong balance sheet position, with no debt as of Jun 30, 2022. Thus, NRIM’s efforts to boost shareholder value seem sustainable on the back of solid earnings strength.
Through its strong cash-generation capabilities, the company is not only rewarding shareholders but also retaining sufficient capital for growing organically. Rise in core loan balance, higher fee and interest income, and increasing interest rates will keep supporting Northrim’s financials.
So far this year, shares of NRIM have lost 7.3% compared with the industry’s fall of 20.8%.
Image Source: Zacks Investment Research
Northrim currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Actions
Over the past month, many banks including United Community Banks, Inc. (UCBI - Free Report) and Stock Yards Bancorp, Inc. (SYBT - Free Report) have announced an increase in their quarterly dividend payouts.
United Community Banks’ board of directors approved a quarterly cash dividend of 22 cents per share, marking a sequential hike of 4.7%. The dividend will be paid out on Oct 5 to shareholders on record as on Sep 15, 2022.
Prior to this, UCBI hiked its dividend by 5% to 21 cents per share in February 2022. In fact, in the last five years, the bank increased its dividend nine times.
Stock Yards Bancorp’s board of directors announced a dividend of 29 cents per share, representing a hike of 3.6% from the prior payout. The dividend will be paid out on Oct 3 to stockholders of record as on Sep 19, 2022.
SYBT has a track record of consistently raising dividends. Since 2012, the company has hiked its dividend 15 times.