Three banks announced quarterly dividends on July 24.
These long-term dividend payers top the S&P 500 Index in terms of dividend yield. The benchmark for the U.S. stock market yielded 1.86% at close on Wednesday.
Shares of Investors Bancorp Inc (ISBC, Financial) were unchanged at $11.43 in after-hours trading on Wednesday. The company announced a quarterly dividend of 11 cents per share, which will be distributed on Aug. 23 to shareholders of record as of Aug. 9. The ex-dividend date is scheduled for Aug. 8. The payment is in line with the previous distribution and will be the third one this year.
Based on Wednesday's closing price, the distribution produces a forward dividend yield of 3.93%, surpassing the industry median of 3.16%.
Investors Bancorp has paid dividends since Nov. 1, 2012. The GuruFocus chart shows the trailing 12-month dividend per share grew by an average 3.9% every year over the last five years.
The stock has gained 10% year to date, but it underperformed the S&P 500 Index by 10.6%. The closing price on Wednesday was near the midpoint of the 52-week range of $9.94 to $13.12.
The market capitalization is $3.19 billion, the price-earnings ratio is 16.52 versus the industry median of 11.69, the price-book ratio is 1.05 versus the industry median of 1.04 and the price-sales ratio is 4.59 versus the industry median of 2.86.
According to the Peter Lynch chart, the stock appears to be trading near fair value.
Wall Street issued an overweight recommendation rating for shares of Investors Bancorp with an average target price of $13.04, reflecting 14% upside from Wednesday’s closing price. The overweight rating means the stock is expected to outperform either the industry or the overall market within a year.
Shares of Regions Financial Corp. (RF, Financial) were unchanged at $15.95 in after-hours trading on Wednesday. The company announced an 11% increase in the quarterly dividend to 15.5 cents per common share. Regions Financial will pay the dividend on Oct. 1. In order to benefit from the fourth payment this year, shareholders must be on the company’s record no later than Sept. 6. The ex-dividend date is Sept. 5.
At close on Wednesday, the forward dividend yield of Regions Financial was 3.60% versus the industry median of 3.16% and the S&P 500's yield of 1.86%.
Regions Financial has paid dividends since Aug. 16, 2004.
The following chart shows the trailing 12-month dividend per share has climbed 11% on average every year over the past five years.
The stock has gained 19.2% year to date, but underperformed the S&P 500 Index by 1.2%. Wednesday’s closing price was 28.7% off the 52-week low of $12.39 and 25.3% below the 52-week high of $19.99.
The stock has a market capitalization of $16.01 billion, a price-earnings ratio of 9.91 versus the industry median of 11.69, a price-book ratio of 1.06 versus the industry median of 1.04 and a price-sales ratio of 2.93 compared to the industry median of 2.86.
According to the Peter Lynch chart, the stock is undervalued.
Wall Street issued an overweight recommendation rating for shares of Regions Financial with an average target price of $16.90, representing 6% upside from the closing price on Wednesday.
Shares of Northeast Indiana Bancorp Inc. (NIDB, Financial) were trading around $37.25 at close on Wednesday. The bank announced a quarterly dividend of 25 cents per share, which will be paid on Aug. 21 to shareholders of record as of Aug. 7. The ex-dividend date is scheduled for Aug. 6. This will be the third payment of the year.
Based on Wednesday's closing price, the payment generates a forward dividend yield of 2.7%, which, as of July 24, is about 46 basis points below the industry median of 3.16% but still substantially above the S&P 500 Index’s yield of 1.86%.
Northeast Indiana Bancorp has paid dividends since Nov. 17, 1995. On average, the trailing 12-month dividend per share increased 4.8% per annum over the last five years.
The stock has climbed only 0.7% year to date, but has underperformed the S&P 500 Index by nearly 20%. The closing price on Wednesday was near the midpoint of the 52-week range of $35.05 to $39.75.
The market capitalization is $44.94 million, the price-earnings ratio is 10.70 versus the industry median of 11.69, the price-book ratio is 1.21 compared to the industry median of 1.04 and the price-sales ratio is 3.18 compared to the industry median of 2.86.
The Peter Lynch chart suggests the stock is trading cheaply.
Sell-side analysts have not issued any recommendation ratings on Northeast Indiana Bancorp.
Disclosure: I have no positions in any securities mentioned.
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