3 Banks Stocks With Dividend Hikes in the Past Week to Watch

Market Overview - The U.S. markets started 2025 strong but have faced significant volatility due to tariff pressures and geopolitical uncertainty [1] - Expectations for a September FOMC rate cut have increased amid signs of a cooling labor market and inflationary effects from trade policies [1] Performance of Indices - The S&P 500 has retreated while the Dow Jones Industrial Average has moved higher, indicating volatile performance across indices [2] Investment Opportunities - Dividend-paying stocks are highlighted as a potential source of stability and income during market fluctuations [2] - Companies with resilient business models and a history of profitability can provide steady cash flows through dividends, serving as a defensive anchor for portfolios [2] Bank Stocks to Watch - Chemung Financial Corporation (CHMG), United Community Bank (UCB), and M&T Bank (MTB) have recently announced dividend hikes, enhancing shareholder value [3][9] - These bank stocks have rallied over 10% in the past year [3] Chemung Financial Corporation (CHMG) - As of June 30, 2025, Chemung Financial had $2.9 billion in assets [6] - The company announced a quarterly cash dividend of 34 cents per share, a 6.3% increase from the previous payout, payable on October 1, 2025 [6][9] - Chemung Financial has increased its dividend three times in the past five years, with an annualized growth rate of 3.09% [7] - The dividend yield is 2.52% with a payout ratio of 26% [7] - The Zacks Consensus Estimate for 2025 sales indicates a year-over-year rise of 16.4%, while earnings are expected to increase by 18.9% [11] United Community Bank (UCB) - As of June 30, 2025, UCB had $28.1 billion in assets [12] - The bank announced a quarterly cash dividend of 25 cents per share, a 4.2% increase from the prior payout, payable on October 3, 2025 [13][9] - UCB has increased its dividend seven times in the past five years, with an annualized growth rate of 6.51% [13] - The dividend yield is 3.07% with a payout ratio of 39% [13] - The Zacks Consensus Estimate for 2025 sales reflects a rise of 7.4%, while earnings are expected to grow by 14.8% [17] M&T Bank (MTB) - As of June 30, 2025, M&T Bank had $211.6 billion in assets [17] - The bank announced a quarterly cash dividend of $1.50 per share, an 11% increase from the previous payout, payable on September 30, 2025 [18][9] - M&T Bank has increased its dividend four times in the past five years, with an annualized growth rate of 5.36% [18] - The dividend yield is 2.84% with a payout ratio of 34% [18] - The Zacks Consensus Estimate for 2025 sales suggests a year-over-year growth of 3.6%, while earnings are expected to increase by 11.1% [21]