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FS Bancorp (FSBW) Hikes Dividend, Announces $5M Buyback Plan
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FS Bancorp, Inc. (FSBW - Free Report) announced a quarterly dividend hike and an additional share repurchase program. The company declared a dividend of 27 cents per share, reflecting a 3.8% increase from the prior payout. The dividend will be paid out on Aug 21, 2024, to shareholders of record as of Aug 7.
Notably, the company has been paying quarterly cash dividends for 46 quarters. Currently, FSBW’s payout ratio is 22% of its earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering decent returns to its shareholders.
Based on its closing price of $37.75 as of Jul 12, FSBW’s current dividend yield is 2.9%. The company has hiked dividends 11 times in the last five years with a five-year annualized growth rate of 30.24%.
Before the recent hike, in January 2024, FS Bancorp hiked its quarterly dividend by 4% to 26 cents per share.
Along with the recent dividend hike, the company’s board authorized an additional share buyback program of up to $5 million worth of shares. The repurchase plan will remain active through Jul 31, 2025. Earlier, FSBW announced a share repurchase plan in August 2023, authorizing up to $5 million worth of shares. The plan is set to expire on Jul 31, 2024. As of Mar 31, 2024, $3 million worth of shares remained available under the company’s existing repurchase program.
Before this, FSBW announced a repurchase plan in April 2022, authorizing the repurchase of $10 million worth of shares.
FS Bancorp has a strong balance sheet. As of Mar 31, 2024, total cash and cash equivalents were $45.4 million. Total loans were $2.4 billion, and long-term borrowings were $129.9 million. This indicates a decent liquidity position.
Further, its common equity CET 1 capital ratio of 12.47% and the total risk-based capital ratio of 13.72% are well above regulatory requirements.
Given its decent capital position and liquidity position, FSBW is expected to sustain its current capital distribution activities and keep enhancing shareholder value.
In the past year, shares of FS Bancorp have risen 28%.
Earlier this month, The PNC Financial Services Group, Inc. (PNC - Free Report) announced a hike in its quarterly common stock dividend. The company declared a quarterly cash dividend of $1.60 per share, marking an increase of 3% from the prior quarter. This dividend will be paid on Aug 5 to shareholders of record as of Jul 15, 2024.
Before the recent hike, PNC raised its dividend by 3.3% to $1.55 per share in July 2023. Also, the company has a five-year annualized dividend growth of 8.84%.
Similarly, Bank OZK (OZK - Free Report) declared a quarterly cash dividend of 40 cents per share, marking an increase of 2.6% from the prior quarter’s levels. The dividend will be paid out on Jul 19 to shareholders of record as of Jul 12.
This marks the 56th consecutive quarter of a dividend hike by OZK. Before the recent hike, the bank raised its dividend by 2.6% to 39 cents per share in April 2024.
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FS Bancorp (FSBW) Hikes Dividend, Announces $5M Buyback Plan
FS Bancorp, Inc. (FSBW - Free Report) announced a quarterly dividend hike and an additional share repurchase program. The company declared a dividend of 27 cents per share, reflecting a 3.8% increase from the prior payout. The dividend will be paid out on Aug 21, 2024, to shareholders of record as of Aug 7.
Notably, the company has been paying quarterly cash dividends for 46 quarters. Currently, FSBW’s payout ratio is 22% of its earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering decent returns to its shareholders.
Based on its closing price of $37.75 as of Jul 12, FSBW’s current dividend yield is 2.9%. The company has hiked dividends 11 times in the last five years with a five-year annualized growth rate of 30.24%.
Before the recent hike, in January 2024, FS Bancorp hiked its quarterly dividend by 4% to 26 cents per share.
Along with the recent dividend hike, the company’s board authorized an additional share buyback program of up to $5 million worth of shares. The repurchase plan will remain active through Jul 31, 2025. Earlier, FSBW announced a share repurchase plan in August 2023, authorizing up to $5 million worth of shares. The plan is set to expire on Jul 31, 2024. As of Mar 31, 2024, $3 million worth of shares remained available under the company’s existing repurchase program.
Before this, FSBW announced a repurchase plan in April 2022, authorizing the repurchase of $10 million worth of shares.
FS Bancorp has a strong balance sheet. As of Mar 31, 2024, total cash and cash equivalents were $45.4 million. Total loans were $2.4 billion, and long-term borrowings were $129.9 million. This indicates a decent liquidity position.
Further, its common equity CET 1 capital ratio of 12.47% and the total risk-based capital ratio of 13.72% are well above regulatory requirements.
Given its decent capital position and liquidity position, FSBW is expected to sustain its current capital distribution activities and keep enhancing shareholder value.
In the past year, shares of FS Bancorp have risen 28%.
FS Bancorp, Inc. Price
FS Bancorp, Inc. price | FS Bancorp, Inc. Quote
Currently, FSBW carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks That Rewarded Shareholders
Earlier this month, The PNC Financial Services Group, Inc. (PNC - Free Report) announced a hike in its quarterly common stock dividend. The company declared a quarterly cash dividend of $1.60 per share, marking an increase of 3% from the prior quarter. This dividend will be paid on Aug 5 to shareholders of record as of Jul 15, 2024.
Before the recent hike, PNC raised its dividend by 3.3% to $1.55 per share in July 2023. Also, the company has a five-year annualized dividend growth of 8.84%.
Similarly, Bank OZK (OZK - Free Report) declared a quarterly cash dividend of 40 cents per share, marking an increase of 2.6% from the prior quarter’s levels. The dividend will be paid out on Jul 19 to shareholders of record as of Jul 12.
This marks the 56th consecutive quarter of a dividend hike by OZK. Before the recent hike, the bank raised its dividend by 2.6% to 39 cents per share in April 2024.