Independent Bank Corp Announces 3.5% Dividend Increase for Shareholders

Independent Bank Corp (INDB) has recently revealed its decision to increase its dividend to 59 cents per share, reflecting a 3.5% raise from the previous dividend. This new dividend rate will be effective for shareholders of record as of March 31, 2025, and the payout will be distributed on April 7, 2025.

Over the past five years, INDB has consistently raised its dividend, marking six increases during this period. The last increment occurred in March 2024, when the company boosted its dividend by 3.6% to 57 cents per share. With a current payout ratio sitting at 50% of its earnings, the bank appears to maintain a solid balance between rewarding shareholders and retaining enough earnings for reinvestment and growth opportunities.

As of the recent trading session, INDB's share price closed at $63.07, which gives the company a dividend yield of approximately 3.62%. Additionally, its five-year annualized dividend growth rate stands at 5.66%, showcasing its commitment to enhancing shareholder value over time.

IDNB’s Other Capital Distribution Activities

In a further sign of financial strength, INDB’s board of directors approved a share repurchase plan for 2025, allowing the company to repurchase up to 1.1 million shares, representing about 5% of its outstanding common stock. This share buyback program initiated on January 1, 2025, is scheduled to expire on December 31, 2025.

Previously, in December 2023, INDB had the same authorization for share repurchase, but the plan expired on December 31, 2024, without any shares being repurchased during that year. This indicates a cautious approach to share buybacks and a focus on maintaining liquidity.

Independent Bank Corp boasts a robust financial position. As of December 31, 2024, its total cash and cash equivalents were recorded at $119 million, with total loans amounting to $3.9 billion and other borrowings of $45 million. This data highlights INDB's good liquidity status.

Moreover, with a common equity Tier-1 capital ratio of 11.74% and a total capital ratio of 12.99% as of the end of 2024, the company is well above regulatory requirements. This strong capital position suggests that INDB can continue to pay appealing dividends while supporting its ongoing capital distribution activities.

INDB’s Price Performance & Zacks Rank

In the past six months, Independent Bank Corp has witnessed a stock price appreciation of 9.1%, significantly outperforming the overall industry, which recorded a growth of just 2%. Currently, the company holds a Zacks Rank of #3 (Hold), indicating a stable standing in the market.

Other Banks That Announced Dividend Hike

In addition to Independent Bank Corp, other major banks have also announced dividends increases. For instance, JPMorgan (JPM) revealed a 12% increase in its quarterly dividend to $1.40 per share, effective for shareholders of record as of April 4, with payment scheduled for April 30, 2025. Over the past five years, JPMorgan has raised its dividends four times.

Furthermore, in the preceding month, Capital City Bank Group, Inc. (CCBG) announced a quarterly cash dividend of 24 cents per share, marking a 4.4% hike from the previous payout, with payment set for March 24, 2025. This bank has raised its dividends a total of nine times over the past five years.

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