Independent Bank Corp’s (INDB – Free Report) board of directors announced a dividend of 59 cents per share. This reflected a 3.5% hike from the previous payout. The dividend will be paid out on April 7, 2025, to shareholders of record as of March 31.
The company has increased its dividend payout six times in the past five years. It last increased the dividend by 3.6% to 57 cents per share in March 2024. Currently, INDB’s payout ratio is 50% of earnings. This indicates that it retains ample earnings for reinvestment and growth initiatives while delivering attractive returns to shareholders.
Based on its closing price of $63.07 as of Friday’s trading session, INDB’s dividend yield is pegged at 3.62%. Its five-year annualized dividend growth is 5.66%.
Independent Bank Corp. Dividend Yield (TTM)
Independent Bank Corp. dividend-yield-ttm | Independent Bank Corp. Quote
IDNB’s Other Capital Distribution Activities
In December 2024, INDB’s board of directors authorized the 2025 share repurchase plan. Under the terms of the 2025 share repurchase plan, the company was authorized to buy back up to 1.1 million shares, reflecting approximately 5% of its outstanding common stock. This repurchase plan commenced on Jan. 1, 2025, and is set to expire on Dec. 31, 2025.
In December 2023, the company was authorized to buy back up to 1.1 million shares, reflecting 5% of its outstanding common stock. The plan expired on Dec. 31, 2024. The company did not repurchase any shares in 2024.
INDB has a strong balance sheet. As of Dec 31, 2024, the company’s total cash and cash equivalents were $119 million, total loans amounted to $3.9 billion and other borrowings were $45 million. This indicates a decent liquidity position.
Considering its common equity Tier-1 capital ratio of 11.74% and the total capital ratio of 12.99% as of Dec. 31, 2024, being well above regulatory requirements, it has a decent capital position to continue paying an attractive dividend.
Given its decent capital position and liquidity position, INDB is expected to sustain current capital distribution activities in the future and keep enhancing shareholder value.
INDB’s Price Performance & Zacks Rank
In the past six months, shares of Independent Bank Corp have risen 9.1% compared with the industry’s growth of 2%.
Price Performance
Image Source: Zacks Investment Research
Currently, INDB 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
This month, JPMorgan (JPM – Free Report) announced an increase in its quarterly dividend. The company declared a dividend of $1.40 per share, which marks a 12% rise from the prior payout. It will be paid out on April 30, 2025, to shareholders of record as of April 4.
JPM had hiked its dividend by 8.7% to $1.25 per share in September 2024. It has increased its dividend payout four times in the past five years. Moreover, the company has a five-year annualized dividend growth rate of 6.03%. Currently, JPM’s payout ratio is 27% of its earnings.
Last month, Capital City Bank Group, Inc. (CCBG – Free Report) announced a quarterly cash dividend of 24 cents per share, indicating a 4.4% hike from the prior payout of 23 cents. The dividend will be paid out on March 24, 2025, to its shareholders of record as of March 10.
In August 2024, CCBG raised its dividend by 9.5% to 23 cents per share. The company has increased its dividend payout nine times in the past five years.
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