ServisFirst Rewards Shareholders With 12% Hike in Cash Dividend

Core Viewpoint - ServisFirst Bancshares, Inc. has approved a quarterly dividend increase to 34 cents per share, reflecting a 12% rise from the previous payout, to be distributed on January 10, 2025 [1] Dividend History and Growth - The company has consistently increased its dividend annually since 2014, with a prior increase of 7.1% to 30 cents per share in December 2023 [2] - ServisFirst has a five-year annualized dividend growth rate of 14.58%, and its current payout ratio stands at 31% of earnings [2] Current Financial Metrics - As of December 16, 2024, the closing price of SFBS shares was $94.41, resulting in a current dividend yield of 1.42$1.61 billion, while cash and cash equivalents amounted to $1.76 billion as of September 30, 2024, indicating a strong balance sheet [4] - The bank's capital ratios as of September 30, 2024, include a Tier 1 capital to average assets ratio of 9.54%, common equity tier 1 capital to risk-weighted assets of 10.91%, and total capital to risk-weighted assets of 12.77% [5] Operational Strength and Market Performance - The consistent dividend hikes demonstrate the company's operational strength and commitment to shareholder returns, which enhances shareholder confidence [6] - Over the past six months, shares of ServisFirst have increased by 57%, outperforming the industry growth of 33.5% [9] - SFBS currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [10]