Independent Bank Corp Announces 3.5% Dividend Increase for Shareholders

Independent Bank Corp (INDB) has recently declared a dividend of 59 cents per share, marking a 3.5% increase from its previous payout. This dividend is scheduled to be distributed on April 7, 2025, to those shareholders who are on record as of March 31.

Over the last five years, INDB has successfully raised its dividend payout six times. The latest adjustment saw an increase of 3.6% to 57 cents per share in March 2024. As it stands, INDB’s payout ratio is at 50% of its earnings, suggesting that the bank retains enough of its earnings to reinvest in growth initiatives, while still providing attractive returns to its shareholders.

As of Friday’s closing price of $63.07, INDB’s dividend yield is calculated at 3.62%, with a five-year annualized growth rate of 5.66%.

INDB’s Additional Capital Distribution Plans

In December 2024, INDB’s board approved a share repurchase plan for 2025, allowing the company to buy back up to 1.1 million shares, which represents approximately 5% of its outstanding common stock. This repurchase initiative began on January 1, 2025, and is set to conclude on December 31, 2025.

In the previous year, a similar plan was authorized, but it expired on December 31, 2024. Notably, the company did not repurchase any shares during 2024.

INDB’s financial standing appears robust, with a total of $119 million in cash and cash equivalents, and total loans amounting to $3.9 billion as of December 31, 2024. Additionally, other borrowings totaled $45 million, showcasing a healthy liquidity position.

The bank's capital ratios are also promising, with a common equity Tier-1 capital ratio of 11.74% and a total capital ratio of 12.99%—well above the regulatory requirements. This solid financial position supports the ongoing ability to reward shareholders through dividends.

Given these factors, including a decent capital and liquidity position, INDB is expected to maintain its current capital distribution practices and continue enhancing shareholder value in the future.

Price Performance and Zacks Rank of INDB

In the past six months, shares of Independent Bank Corp have experienced a rise of 9.1%, compared to a more modest 2% growth within the industry during the same period.

Currently, INDB holds a Zacks Rank of #3 (Hold). You can find the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Recent Dividend Announcements in the Banking Sector

This month, JPMorgan (JPM) announced a boost to its quarterly dividend, declaring $1.40 per share, which is a 12% increase from its previous payout. This will be paid out on April 30, 2025, to shareholders on record as of April 4.

JPMorgan had previously raised its dividend by 8.7% to $1.25 per share in September 2024, marking four increases in the last five years. Its five-year annualized dividend growth rate stands at 6.03%, with a payout ratio of 27% of its earnings.

Similarly, Capital City Bank Group, Inc. (CCBG) revealed a quarterly cash dividend of 24 cents per share, reflecting a 4.4% increase from the earlier 23 cents. This dividend will be paid out on March 24, 2025, to shareholders on record as of March 10.

Prior to this announcement, CCBG had lifted its dividend by 9.5% to 23 cents per share in August 2024 and achieved a total of nine dividend increases over the past five years.

Dividend, Shareholders, Banking