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City Holding Rewards Shareholders With 10.5% Hike in Cash Dividend
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City Holding Co. (CHCO - Free Report) announced a quarterly cash dividend of 79 cents per share. This reflects a 10.5% hike from the prior payout. The dividend will be paid out on Oct. 31, 2024, to shareholders of record as of Oct. 15.
Before the latest hike, the bank increased its dividend by 10% to 71.5 cents per share in September 2023.
Based on its closing price of $115.09 as of Sept. 25, CHCO’s current dividend yield is 2.8%.
Charles (Skip) Hageboeck, president and CEO of City Holding said, “The decision to increase the dividend to $3.16 on an annualized basis is based on the Company's strong current capital and liquidity position, our financial performance during 2024, and our confidence in the Company's ability to sustain this performance.”
CHCO’s Other Capital Distribution Activities
City Holding has an ongoing share repurchase program too. The plan, announced this January, authorized the repurchase of up to 1 million shares with no expiration date. As of June 30, 2024, 0.8 million shares were available under the authorization.
Before this, the company announced a repurchase plan in May 2022, authorizing the buyback of up to 1 million shares, rescinded in January 2024. Prior to this, CHCO had announced a repurchase plan in March 2021.
Our Take on CHCO Stock
City Holding has a strong balance sheet. As of June 30, 2024, total cash and cash equivalents were $218 million and borrowings (comprising FHLB long-term advances and other liabilities) were $264.7 million. Further, net loans were $4.1 billion and total deposits were $5.1 billion. This indicates a solid liquidity position.
Further, at the end of the second quarter of 2024, its common equity Tier-1 risk-based capital ratio of 16.1% and the total risk-based capital ratio of 16.6% were well above regulatory requirements.
Given its decent capital and liquidity positions, CHCO is expected to sustain its current capital distribution activities and enhance shareholder value.
Year to date, shares of City Holding have risen 4.4% compared with the industry’s growth of 13%.
Last week, NorthEast Community Bancorp, Inc. (NECB - Free Report) announced a quarterly cash dividend of 15 cents per share. This reflects a 50% hike from the prior payout. Besides this, the company also announced a special cash dividend of 15 cents per share. Both dividends will be paid out on Nov. 6, 2024, to shareholders of record as of Oct 4.
This is the second dividend increase announced by NECB in 2024. Prior to the latest hike, the company increased its dividend by 66.7% to 10 cents per share this March.
Similarly, JPMorgan (JPM - Free Report) announced an increase in its quarterly dividend. The company declared a dividend of $1.25 per share, which marks an 8.7% rise from the prior payout. It will be paid out on Oct. 31, 2024, to shareholders of record as of Oct. 4.
The hike is in line with JPMorgan’s previous announcement to hike its dividend after the clearance of the 2024 stress test.
This is the second dividend hike announced by JPMorgan this year. In February, the company announced a 9.5% increase in quarterly dividends.
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City Holding Rewards Shareholders With 10.5% Hike in Cash Dividend
City Holding Co. (CHCO - Free Report) announced a quarterly cash dividend of 79 cents per share. This reflects a 10.5% hike from the prior payout. The dividend will be paid out on Oct. 31, 2024, to shareholders of record as of Oct. 15.
Before the latest hike, the bank increased its dividend by 10% to 71.5 cents per share in September 2023.
Based on its closing price of $115.09 as of Sept. 25, CHCO’s current dividend yield is 2.8%.
Charles (Skip) Hageboeck, president and CEO of City Holding said, “The decision to increase the dividend to $3.16 on an annualized basis is based on the Company's strong current capital and liquidity position, our financial performance during 2024, and our confidence in the Company's ability to sustain this performance.”
CHCO’s Other Capital Distribution Activities
City Holding has an ongoing share repurchase program too. The plan, announced this January, authorized the repurchase of up to 1 million shares with no expiration date. As of June 30, 2024, 0.8 million shares were available under the authorization.
Before this, the company announced a repurchase plan in May 2022, authorizing the buyback of up to 1 million shares, rescinded in January 2024. Prior to this, CHCO had announced a repurchase plan in March 2021.
Our Take on CHCO Stock
City Holding has a strong balance sheet. As of June 30, 2024, total cash and cash equivalents were $218 million and borrowings (comprising FHLB long-term advances and other liabilities) were $264.7 million. Further, net loans were $4.1 billion and total deposits were $5.1 billion. This indicates a solid liquidity position.
Further, at the end of the second quarter of 2024, its common equity Tier-1 risk-based capital ratio of 16.1% and the total risk-based capital ratio of 16.6% were well above regulatory requirements.
Given its decent capital and liquidity positions, CHCO is expected to sustain its current capital distribution activities and enhance shareholder value.
Year to date, shares of City Holding have risen 4.4% compared with the industry’s growth of 13%.
Image Source: Zacks Investment Research
Currently, CHCO 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 Announced Dividend Hike
Last week, NorthEast Community Bancorp, Inc. (NECB - Free Report) announced a quarterly cash dividend of 15 cents per share. This reflects a 50% hike from the prior payout. Besides this, the company also announced a special cash dividend of 15 cents per share. Both dividends will be paid out on Nov. 6, 2024, to shareholders of record as of Oct 4.
This is the second dividend increase announced by NECB in 2024. Prior to the latest hike, the company increased its dividend by 66.7% to 10 cents per share this March.
Similarly, JPMorgan (JPM - Free Report) announced an increase in its quarterly dividend. The company declared a dividend of $1.25 per share, which marks an 8.7% rise from the prior payout. It will be paid out on Oct. 31, 2024, to shareholders of record as of Oct. 4.
The hike is in line with JPMorgan’s previous announcement to hike its dividend after the clearance of the 2024 stress test.
This is the second dividend hike announced by JPMorgan this year. In February, the company announced a 9.5% increase in quarterly dividends.