NewtekOne Rewards Investors With 5.5% Dividend Hike Elevating Investor Spirits: NewtekOne (NEWT) Announces 5.5% Dividend Increase

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NewtekOne, Inc. NEWT has delighted investors by elevating its quarterly dividend payout. A quarterly cash dividend of 19 cents per share has been declared, a noteworthy 5.5% surge from the previous allocation. This enhanced dividend will be disbursed on Apr 15, 2024, to shareholders as of record on Apr 1.

The company has demonstrated its commitment to its shareholders by increasing its dividend payout on 12 occasions over the past five years. With a current payout ratio at 44% of earnings, NewtekOne maintains ample earnings for reinvestment in growth strategies while simultaneously ensuring attractive returns for its valued shareholders.

With yesterday’s closing price set at $10.19, NEWT flaunts an enticing dividend yield of 7.45%.

On Jan 6, 2023, the company finalized the acquisition of the National Bank of New York City at a deal value of $20 million. This strategic move saw NewtekOne acquiring 0.0336 million shares of the National Bank of New York City. Additionally, NEWT transitioned from its Business Development Company status to a financial holding company. Concurrently, the company tapered its dividend payout from 70 cents in November 2022 to 18 cents in February 2023.

NewtekOne exhibits a robust balance sheet, exemplified by its total cash and cash equivalents, which stood at $184 million as of Dec 31, 2023, marking a substantial 46.5% increase from the previous year. This uptrend underscores the company’s improving liquidity position.

Boasting a common equity Tier-1 capital ratio of 16.5%, a total capital ratio of 19.6%, and a leverage ratio of 15.6%, NewtekOne is well-positioned from a capital standpoint to continue furnishing attractive dividend payouts.

Given its robust capital foundations and flourishing liquidity metrics, NEWT is anticipated to sustain its current capital distributions, elevating shareholder value moving forward.

Over the past three months, NEWT’s shares have experienced a dip of 28.8% as opposed to the industry’s modest growth of 2.3%.
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Position Among Peers

Presently, NEWT is assigned a Zacks Rank #3 (Hold). For an in-depth analysis, you can view the complete list of Zacks #1 Rank (Strong Buy) stocks here.

Comparison with Other Banks

Guaranty Bancshares, Inc. GNTY recently unveiled a quarterly cash dividend of 24 cents per share, reflecting a 4.3% increment from the previous payout. This dividend is scheduled for payment on Apr 10 to shareholders as of Mar 25.

Prior to this announcement, GNTY enhanced its quarterly dividend by 4.5% to 23 cents per share. Over the last five years, the company has augmented its dividend payouts seven times, with an impressive annualized dividend growth rate of 9.8%. At present, Guaranty Bancshares retains a payout ratio equivalent to 36% of earnings.

During March 2024, Capital City Bank Group, Inc. CCBG joined the dividend hike trend with an increase in its quarterly dividend. With a quarterly cash dividend of 21 cents per share, marking a 5% growth from the previous payout, shareholders can anticipate this distribution on Mar 25, 2024, for those identified as shareholders on Mar 11.

Notably, CCBG had previously raised its dividend by 11.1% to 20 cents per share on Aug 24, 2023, backed by eight dividend increases within the last five years. Additionally, the company showcases a five-year annualized dividend growth of 11.45%, maintaining a comfortable payout ratio of 25% of earnings.

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