NorthEast Community Bancorp, Inc. NECB announced a quarterly cash dividend of 15 cents per share. This reflects a 50% hike from the prior payout. Besides this, the company also announced a special cash dividend of 15 cents per share. Both dividends will be paid out on Nov. 6, 2024, to shareholders of record as of Oct 4.

Prior to the latest hike, the bank increased its dividend by 66.7% to 10 cents per share this March.
 
Based on its closing price of $23.24 as of Sept. 19, NECB’s current dividend yield is 2.6%.
 
Kenneth A. Martinek, chairman and CEO of NorthEast Community Bancorp said, “The payment of dividends continues to represent one part of our long-term commitment to enhancing shareholder value.”

NECB’s Other Capital Distribution Activities

The company has an ongoing share repurchase program too. The plan, announced in May 2023, authorized the repurchase of additional 1.5 million shares, with no expiration date.  As of June 30, 2024, 0.4 million shares were available under the authorization.

This is the company’s second buyback plan since it completed its second-step conversion and related stock offering in July 2021. The company’s first repurchase plan commenced in July 2022, authorizing the buyback of roughly 1.6 million shares, and was completed in April 2023.

Our Take on NECB Stock

NorthEast Community Bancorp has a strong balance sheet. As of June 30, 2024, total cash and cash equivalents were $113.9 million and borrowings were $47 million. Further, net loans were $1.7 billion and total deposits were $1.6 billion. This indicates a solid liquidity position.

Further, at the end of the second quarter of 2024, its common equity Tier-1 risk-based capital ratio of 13.4% and the total risk-based capital ratio of 13.7% were well above regulatory requirements.

Given the decent capital and liquidity positions, NECB is expected to sustain its current capital distribution activities and keep enhancing shareholder value.

Year to date, shares of NorthEast Community Bancorp have surged 31% compared with the industry’s growth of 2.8%.

Image Source: Zacks Investment Research

Currently, NECB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks That Announced Dividend Hike

Earlier this week, JPMorgan JPM announced an increase in its quarterly dividend. The company declared a dividend of $1.25 per share, which marks an 8.7% rise from the prior payout. It will be paid out on Oct. 31, 2024, to shareholders of record as of Oct. 4.

The hike is in line with JPMorgan’s previous announcement to hike its dividend after the clearance of the 2024 stress test.

This is the second dividend hike announced by JPMorgan this year. In February, the company announced a 9.5% increase in quarterly dividends.

Similarly, last week, Fifth Third Bancorp FITB declared a cash dividend of 37 cents per share for the third quarter of 2024. This reflects a 6% hike from the prior payout. The dividend will be paid out on Oct. 15, 2024, to shareholders of record as of Sep. 30, 2024.

Before the latest hike, FITB increased its dividend by 6.1% to 35 cents per share in September 2023. The company hiked its dividend five times in the past five years, with an annualized dividend growth of 8.6%.