Shares of Farmers National Banc Corp. FMNB gained 1.4% in aftermarket trading in response to its board of directors’ approval of a hike in the quarterly cash dividend. The new dividend of 17 cents per share represents an increase of 6.3% from the prior payout. The dividend will be paid out on Dec 30 to shareholders on record as of Dec 9.
Considering the last day’s closing price, FMNB’s dividend yield currently stands at 4.53%, which is impressive compared with the industry average of 2.37%. The yield is attractive for income investors and represents a steady income stream.
FMNB has a record of continuously raising dividends. Prior to this hike, the company increased the dividend from 14 cents per share to 16 cents in February 2022.
Farmers National has raised its quarterly dividend seven times in the last five years. Also, it has a five-year annualized dividend growth rate of 19.7%. Currently, the company's payout ratio is 32% of earnings.
The company also has an efficient share repurchase plan. In 2019, Farmers National announced a share repurchase authorization of up to 1.5 million shares. As of Sep 30, 2022, the company had 0.5 million shares remaining to be repurchased under this program.
Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, FMNB will keep enhancing shareholder value.
So far this year, shares of FMNB have lost 19.2% compared with 0.1% decline of the industry it belongs to.
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Currently, the company 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 Raised Dividend Recently
KeyCorp’s KEY board of directors approved of a hike in the quarterly cash dividend. The new dividend of 20.5 cents per share represents an increase of 5.1% from the prior payout. The dividend will be paid out on Dec 15 to shareholders on record as of Nov 29.
KEY has a record of continuously raising dividends. Prior to this hike, the company announced a dividend hike in November 2021. The dividend was increased from 18.5 cents per share to 19.5 cents.
WesBanco, Inc.’s WSBC board of directors has approved a hike in the quarterly cash dividend. The new dividend of 35 cents per share represents an increase of 2.9% from the previous dividend of 34 cents. The dividend will be paid out on Jan 3, 2023, to shareholders of record as of Dec 9, 2022.
WSBC has a record of continuously raising dividends. The latest dividend hike is the 16th time the company has increased its quarterly dividend since 2010.
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