Independent Bank Corp Rewards Shareholders With 3.5% Dividend Hike

Core Viewpoint - Independent Bank Corp (INDB) has announced a dividend increase of 3.5% to 59 cents per share, reflecting its commitment to returning value to shareholders while maintaining a strong financial position [1][2]. Dividend Information - The upcoming dividend will be paid on April 7, 2025, to shareholders of record as of March 31, 2025 [1]. - INDB has increased its dividend payout six times in the past five years, with the last increase being 3.6% to 57 cents per share in March 2024 [2]. - The current payout ratio stands at 50% of earnings, indicating a balance between returning capital to shareholders and retaining earnings for growth [2]. - Based on a closing price of $63.07, INDB's dividend yield is 3.62%, with a five-year annualized dividend growth rate of 5.66% [2]. Share Repurchase Activities - INDB's board authorized a share repurchase plan for 2025, allowing the buyback of up to 1.1 million shares, approximately 5% of its outstanding common stock, effective from January 1, 2025, to December 31, 2025 [3]. - A previous share repurchase plan authorized in December 2023 also allowed for the buyback of 1.1 million shares, but no shares were repurchased in 2024 [4]. Financial Position - As of December 31, 2024, INDB reported total cash and cash equivalents of $119 million, total loans of $3.9 billion, and other borrowings of $45 million, indicating a strong liquidity position [4]. - The common equity Tier-1 capital ratio is 11.74%, and the total capital ratio is 12.99%, both well above regulatory requirements, supporting the company's ability to sustain dividend payments [5]. Price Performance - Over the past six months, INDB shares have increased by 9.1%, outperforming the industry growth of 2% [6]. - Currently, INDB holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [8].