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Bank7 Corp (BSVN) Stock Up on 33.3% Hike in Quarterly Dividend

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Shares of Bank7 Corp. (BSVN - Free Report) gained 1.2% in response to its board of directors’ approval of a hike in the quarterly dividend. The new dividend of 16 cents per share represents a hike of 33.3% from the prior payout. The dividend will be paid out on Jan 5, 2023, to shareholders of record as of Dec 23, 2022.

Thomas L. Travis, the president and CEO of BSVN, said, “Today's announcement of a 33% increase in our quarterly cash dividend illustrates the strength of our core earnings growth and reflects our confidence in sustaining those core earnings. Even with the large increase, we continue to enjoy a low dividend payout ratio compared to industry averages, and therefore, we expect to continue our long-established practice of building shareholder value at a rapid pace.”

Considering the last day’s closing price, the company’s dividend yield currently stands at 2.44%. The yield is attractive for income investors and represents a steady income stream.

Notably, this is the third consecutive annual increase in BSVN’s quarterly cash dividend.

Prior to this hike, the company increased its dividend by 10% to 12 cents per share in December 2021. The dividend was paid out on Jan 7, 2022, to shareholders of record as of Dec 23, 2021.

BSVN also has an efficient share repurchase plan. On Sep 5, 2019, the company adopted a repurchase plan under which it was authorized to buy back up to 0.5 million shares. On Mar 13, 2020, its board of directors approved a share expansion of 0.5 million, while on Nov 2, 2020, the board approved a share expansion of 0.75 million to the plan, which expired on Sep 5, 2021.

On Oct 28, 2021, BSVN adopted a new repurchase plan under which it is authorized to repurchase up to 0.75 million shares. As of Sep 30, 2022, the entire repurchase authorization remained available.

Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, it will keep enhancing shareholder value.

Over the past six months, shares of BSVN have gained 8%, marginally underperforming the 8.3% rally of the industry it belongs to.

 

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Currently, Bank7 Corp sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dividend Hikes by Other Banks

Last month, banks like Prosperity Bancshares, Inc. (PB - Free Report) and Associated Banc-Corp (ASB - Free Report) announced increases in their quarterly dividend payouts.

Prosperity Bancshares announced that its board of directors approved a quarterly dividend of 55 cents per share, representing a hike of 5.8% from the prior payout. The dividend will be paid out on Jan 3, 2023, to shareholders of record as of Dec 15, 2022.  

Similarly, Associated Banc-Corp declared a regular quarterly cash dividend of 21 cents per share, marking a 5% increase from the prior payout. The dividend will be paid out on Dec 15 to shareholders of record as of Dec 1.


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Prosperity Bancshares, Inc. (PB) - free report >>

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