VersaBank (NASDAQ:VBNK) Plans Dividend Increase – $0.03 Per Share

VersaBank (NASDAQ:VBNK) announced a quarterly dividend on Wednesday, March 5th, RTT News reports. Stockholders of record on Friday, April 4th will be paid a dividend of 0.025 per share on Wednesday, April 30th. This represents a $0.10 annualized dividend and a dividend yield of 0.96%. This is a 41.2% increase from VersaBank’s previous quarterly dividend of $0.02.

VersaBank has a dividend payout ratio of 3.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect VersaBank to earn $2.23 per share next year, which means the company should continue to be able to cover its $0.07 annual dividend with an expected future payout ratio of 3.1%.

VersaBank Trading Down 12.5 %

Shares of VBNK stock opened at $10.43 on Thursday. The stock has a market cap of $339.17 million, a price-to-earnings ratio of 9.48 and a beta of 0.91. The stock has a 50-day moving average of $13.39 and a 200-day moving average of $14.21. VersaBank has a 1-year low of $9.48 and a 1-year high of $18.38.

VersaBank (NASDAQ:VBNK) last issued its quarterly earnings results on Monday, December 9th. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.01. VersaBank had a return on equity of 11.20% and a net margin of 13.52%. Sell-side analysts forecast that VersaBank will post 1.46 earnings per share for the current year.

Analyst Upgrades and Downgrades

Separately, Raymond James reissued an “outperform” rating and issued a $17.00 price target (up previously from $15.00) on shares of VersaBank in a research note on Friday, November 8th.

VersaBank Company Profile

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages.