2 Dividend Hikes to Watch for This Week

Companies often tend to increase their dividends at the same time each year, making it beneficial to review what actions they took last year. As we approach the holiday season and year-end, only three companies raised their dividends at this time last year through the end of 2021, and one of them has already announced another hike this past week (Preferred Bank).

The remaining two companies, highlighted below, have demonstrated a solid dividend growth history of over five years, suggesting a greater chance of future dividend increases in the coming days. The insights presented stem from reliable financial sources.

ServisFirst Bancshares raised its dividend by 15% last year, and it currently offers an annualized payout of $0.92, resulting in a yield of 1.4% and a payout ratio of 15.1%. The company boasts a dividend growth streak of eight years.

Despite an overall neutral analyst rating, ServisFirst missed the consensus earnings estimate by $0.03 per share in its third-quarter report, even though its earnings per share increased by 22% to $1.17. The company’s shares fell by 12.1% over the last five sessions, reflecting challenges in the financial sector.

Camden National raised its dividend by 11.1% last year and presently has an annualized payout of $1.60, yielding 3.9% with a payout ratio of 36.8%. Its dividend growth streak stands at five years.

Camden National also holds an overall neutral rating from analysts. In the third quarter, it reported earnings per share of $0.97, missing the analyst estimate of $1.10, which marked a 5% decrease from the previous year. The company’s revenue for the quarter was $44.58 million, falling short of the consensus estimate of $48.42 million. Its shares experienced a 2.6% decline over the week.

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