In tune with its efforts to enhance stockholders' return,
Commerce Bancshares, Inc.
) declared a 5% hike in its quarterly dividend to 22.5 cents per
share. The new dividend will be paid on Mar 24 to shareholders of
record as of Mar 5.
The company has a record of consistently increasing quarterly
dividend. Even during the financial crisis when many banks and
financial institution slashed the dividend amount or discontinued
dividend payment, Commerce Bancshares not only continued with its
payout but managed to increase it as well. Notably, the current
payout marks its 46th consecutive yearly increase in quarterly
Recently, on Jan 14, Commerce Bancshares declared fourth-quarter
2013 earnings per share of 69 cents, missing the Zacks Consensus
Estimate by 2.8%. However, total revenue outpaced the Zacks
Consensus Estimate by 1.0% to $271.7 million.
Results reflected a decline in net interest income and higher
operating expense, partially offset by lower provision for loan
losses and rise in non-interest income. Further, improvement in
credit quality and growth in loans and deposits were the
tailwinds for the quarter.
As of Dec 31, 2013, cash and due from banks stood at $518.4
million, down 9.5% year over year.
Commerce Bancshares currently carries a Zacks Rank #3 (Hold). But
its dividend paying nature makes it an income pick. Also, a
price-to-earnings ratio of 15.30 reflects adequate room for
growth going forward.
Apart from Commerce Bancshares, some other financial institutions
have increased their dividends in recent times. On Jan 23,
Old National Bancorp.
) made a sequential raise of 10.0% in its quarterly cash dividend
to 12 cents per share while
) hiked its quarterly cash dividend by 20% sequentially to 30
cents per share on Jan 29. In Nov 2013,
) paid a quarterly cash dividend of 38 cents per share, up 2.7%
over its previous pay.
COMMERCE BANCSH (CBSH): Free Stock Analysis
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OLD NATL BCP (ONB): Free Stock Analysis
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