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WesBanco (WSBC) Rewards Investors, Hikes Dividend by 2.9%

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WesBanco, Inc.’s (WSBC - Free Report) board of directors has approved a sequential hike in the quarterly cash dividend. The new dividend of 36 cents per share represents an increase of 2.9% from the previous dividend of 35 cents. The dividend will be paid out on Jan 2, 2024 to shareholders of record as of Dec 8, 2023.

Considering yesterday’s closing price of $27.44, its dividend yield is currently pegged at 5.25%, which is above the industry average of 2.95%. The yield is attractive for income investors and represents a steady income stream.

WSBC has a record of continuously raising its dividends. The latest dividend hike is the 17th time the company has increased its quarterly dividend.  Prior to this hike, the company announced a dividend hike in November 2022. The dividend was increased from 34 cents per share to 35 cents.

WesBancohas five-year annualized dividend growth of 3.45%. Currently, the company's payout ratio is 49% of earnings.

Apart from regular dividend hikes, the company also has a share repurchase plan in place. On Feb 24, 2022, it announced a stock repurchase plan for up to 3.2 million shares with no expiration date. As of Sep 30, 2023, the buyback plan had around 1.02 million shares remaining under its authorization.

WesBanco remains well-capitalized and exhibits decent earnings strength. As of Sep 30, 2023, the company maintained higher cash levels compared to its other short-term borrowings. Thus, regular dividend hikes are anticipated to be sustainable, even if the economic situation worsens. Through this, the company will keep enhancing shareholders’ value.

Over the past six months, shares of WSBC have rallied 18.7% compared with a 12.4% rise of the industry it belongs to. 

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Currently, WSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Other Banks Taking Similar Steps

Bank OZK (OZK - Free Report) announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend was paid out on Oct 20 to shareholders of record as of Oct 30. This represents the 53rd consecutive quarter of a dividend hike.

Prior to the recent hike, OZK raised its dividend by 2.8% to 36 cents per share in July 2023. Also, the company has a five-year annualized dividend growth of 10.6%.

United Bankshares, Inc. (UBSI - Free Report) announced a hike in its quarterly dividend for the 50th consecutive year. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend will be paid out on Jan 2, 2024 to shareholders of record as of Dec 8.

Richard M. Adams, Jr., UBSI’s chief executive officer, stated, "Fifty years of dividend growth is a testament to our proven track record as a high performing company with a low risk profile."


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