5 Bank Stocks With Recent Dividend Hikes to Keep on Your Radar

Market Overview - The U.S. markets started 2026 with a decent performance despite concerns over labor markets, inflation, geopolitical tensions, and trade policies [1] - Strong fourth-quarter results and a patient Federal Reserve provided support to investor sentiment [1] Banking Sector Performance - The KBW Nasdaq Regional Banking Index increased by 6.5% in January, indicating a positive trend in the banking sector [2] - Investors are encouraged to focus on fundamentally solid banks that offer attractive dividend yields, which can provide stability and income [2] Dividend Increases - Five banks announced dividend hikes in January, with increases ranging from 4% to 16.7%, reflecting sustained profitability and capital strength [8] - The banks that raised dividends include Hancock Whitney Corporation, Hilltop Holdings, Tompkins Financial, OFG Bancorp, and Sierra Bancorp, all of which have robust business models [3][8] Hancock Whitney Corporation (HWC) - HWC announced a quarterly cash dividend of $0.50 per share, an increase of 11.1% from the previous payout, with a dividend yield of 2.62% and a payout ratio of 31% [5] - The company has a market cap of $5.75 billion and is expected to see a 5.4% rise in sales and a 5.8% growth in earnings for 2026 [9] Hilltop Holdings (HTH) - HTH declared a quarterly cash dividend of $0.20 per share, marking an 11% increase from the prior payout, with a dividend yield of 1.92% and a payout ratio of 27% [10][11] - The company has a market cap of $2.3 billion and has seen a stock rally of 9.5% over the past month [13] Tompkins Financial (TMP) - TMP announced a quarterly cash dividend of $0.67 per share, an 8.1% increase from the previous year, with a dividend yield of 3.25% and a payout ratio of 41% [14] - The company has a market cap of $1.16 billion and is projected to have a 16.5% rise in earnings for 2026 [22] OFG Bancorp - OFG declared a quarterly cash dividend of $0.35 per share, a 16.7% increase from the prior payout, with a dividend yield of 2.98% and a payout ratio of 26% [18] - The company has a market cap of $1.8 billion and has increased its dividend eight times in the past five years [18] Sierra Bancorp (BSRR) - BSRR announced a quarterly cash dividend of $0.26 per share, a 4% increase from the previous payout, with a dividend yield of 2.82% and a payout ratio of 35% [23] - The company has a market cap of $470.9 million and is expected to see a 3.4% rise in sales and a 6.4% increase in earnings for 2025 [26]