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Stock Yards Bancorp (SYBT) Hikes Quarterly Cash Dividend by 3.3%

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Stock Yards Bancorp, Inc. (SYBT - Free Report) announced a quarterly cash dividend of 31 cents per share. This reflects a 3.3% hike from the prior payout. The dividend will be paid out on Oct 1, 2024, to shareholders of record as of Sep 16.

Markedly, with this announcement, Stock Yards Bancorp has increased its quarterly dividend 17 times since 2011, reflecting a cumulative hike of 158% over the period.

Currently, SYBT’s payout ratio is 34% of 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 $57.23 as of Aug 21, SYBT’s current dividend yield is 2.2%.
 
James A. (Ja) Hillebrand, Chairman and CEO, stated, “Our strong and consistent profitability and solid capital position contributes to our ability to steadily increase dividends and to further build shareholder value.”

The company has an ongoing share repurchase program too. The plan, announced in May 2019, authorized the repurchase of 1 million shares. The plan was extended in May 2023 and is now set to expire in May 2025.

Notably, Stock Yards Bancorp has not repurchased any shares since 2020. As of Jun 30, 2024, 0.7 million shares remained available under the repurchase program.

Stock Yards Bancorp has a strong balance sheet. As of Jun 30, 2024, total cash and due from banks was $85.4 million. Total loans were $6.1 billion and total deposits were $6.6 billion. This indicates a decent liquidity position.

Further, its common equity Tier-1 risk-based capital ratio of 11.1% and the total risk-based capital ratio of 12.6% are well above regulatory requirements.

Given its decent capital position and liquidity position, SYBT is expected to sustain its current capital distribution activities and keep enhancing shareholder value.

Year to date, shares of Stock Yards Bancorp have risen 11.1% compared with the industry’s growth of 11.2%.

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Currently, SYBT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Financial Services Firms That Announced Dividend Hike

Earlier this month, United Community Banks, Inc. (UCB - Free Report) increased its quarterly cash dividend by 4.3% to 24 cents per share. The dividend will be paid out on Oct 24 to its shareholders as of Sep 16, 2024. Further, the board authorized an increase in the existing share repurchase plan.

Before the recent dividend hike, UCB increased its dividend by 4.5% to 23 cents per share in February 2023. The company has hiked its dividend seven times in the last five years, with annualized dividend growth of 7.37%.

Concurrently, United Community amended its existing share repurchase program. The board increased the program to $100 million and extended the expiration of the authorization to Dec 31, 2025.

Similarly, Virtus Investment Partners, Inc. (VRTS - Free Report) announced a sequential hike in its quarterly dividend for the seventh consecutive year. The company declared a quarterly cash dividend of $2.25 per share, marking an increase of 18% from the prior payout. The dividend will be paid out on Nov 13 to shareholders of record as of Oct 31, 2024.

Before the recent hike, VRTS increased its dividend by 15% to $1.90 per share in August 2023.


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