Community Bank With 7 Years Dividend Growth Added to Best Dividend Stocks List
Dividend.com has added a community bank to the Best Dividend Stocks List and removed a global logistics and transportation firm from the list.
Rising rates are often seen as a major hindrance for many sectors of the market. The problem is higher rates, courtesy of the Federal Reserve, make borrowing more costly. However, for some segments of the market, higher rates turn into higher profits. And that includes our new community bank pick.
Benefiting from its strong regional focus, our pick recently recorded one of its best operating years in its 175-year history, driven by solid commercial loan underwriting, strong investment growth and the ability to realize higher net interest margins. Banks make money on the difference between what it charges for loans and what it gives customers on their deposits. And, lately, that difference has been in favor of the banks.
This continued strength has allowed our new community bank pick to be a steady and growing dividend payer throughout its history, which includes plenty of annual special dividend payments in recent years.
But our pick isn't done yet. Thanks to both tax reform and changes to the Dodd-Frank Act, our community bank is set to surge even further. As a domestic small-cap, our bank is set to receive the maximum benefit from lower taxes. Meanwhile, less regulation will free up capital constraints and allow it to better compete. What that all means is that our pick has the goods to keep growing and increasing its dividend even further. Five reasons why you should own this stock:
- Regional bank in an affluent section of the U.S. Northeast that has allowed it to grow assets to nearly $10 billion.
- Long 175-year operating history and has paid a dividend every quarter since its NYSE listing in 2003.
- A focus on higher-margined commercial and construction loans tied to physical assets/real estate.
- Grown its dividends for the last seven years, with the most recent special payout being rolled out late last year.
- Low payout ratio of 43.5% and healthy yield of 3.18%.
All data in the table above updated as of 04/04/2018.
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MORE ABOUT THIS STOCK
Trailing 5-Year Dividend Payout History
- Annualized Growth Over The Last 5 Years: 8.9%.
As a dividend investor, you need access to the best and safest stocks on the market. Dividend.com’s DARS ratings have been providing you with reliable and profitable stock analysis since 2008, and this addition is no exception.
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