Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB) Announces Dividend Increase - $0.50 Per Share

Key Points

• Bank of N.T. Butterfield & Son announced a quarterly dividend increase to $0.50 per share, reflecting a 13.6% rise from the previous dividend of $0.44.
• The bank has a dividend payout ratio of 33.5%, indicating its dividends are well-supported by earnings, with projected earnings of $4.85 per share for the next year.
• In stock market activity, shares of Bank of N.T. Butterfield & Son recently traded at $45.89, with analysts expressing a positive outlook and target prices ranging between $50.00 and $54.00.

Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB - Get Free Report) declared a quarterly dividend on Tuesday, July 29th, Wall Street Journal reports. Shareholders of record on Monday, August 11th will be paid a dividend of 0.50 per share by the bank on Monday, August 25th. This represents a $2.00 dividend on an annualized basis and a yield of 4.36%. The ex-dividend date is Monday, August 11th. This is a 13.6% increase from Bank of N.T. Butterfield & Son's previous quarterly dividend of $0.44.

Bank of N.T. Butterfield & Son has a dividend payout ratio of 33.5% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Bank of N.T. Butterfield & Son to earn $4.85 per share next year, which means the company should continue to be able to cover its $1.76 annual dividend with an expected future payout ratio of 36.3%.

Bank of N.T. Butterfield & Son Stock Performance

NYSE:NTB traded up $1.42 on Tuesday, reaching $45.89. 190,880 shares of the company's stock were exchanged, compared to its average volume of 177,852. The company has a debt-to-equity ratio of 0.09, a current ratio of 0.65 and a quick ratio of 0.65. The firm has a market cap of $2.18 billion, a price-to-earnings ratio of 9.52 and a beta of 0.64. Bank of N.T. Butterfield & Son has a 52 week low of $33.04 and a 52 week high of $46.89. The stock has a fifty day simple moving average of $44.01 and a 200-day simple moving average of $40.40.

Bank of N.T. Butterfield & Son (NYSE:NTB - Get Free Report) last issued its earnings results on Monday, July 28th. The bank reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $1.15 by $0.11. The firm had revenue of $146.30 million during the quarter, compared to analyst estimates of $146.91 million. Bank of N.T. Butterfield & Son had a net margin of 26.54% and a return on equity of 21.30%. During the same quarter last year, the business earned $1.09 earnings per share. As a group, sell-side analysts predict that Bank of N.T. Butterfield & Son will post 4.4 earnings per share for the current year.

Hedge Funds Weigh In On Bank of N.T. Butterfield & Son

An institutional investor recently raised its position in Bank of N.T. Butterfield & Son stock. Jane Street Group LLC increased its position in Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB - Free Report) by 80.3% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 70,537 shares of the bank's stock after acquiring an additional 31,420 shares during the quarter. Jane Street Group LLC owned about 0.15% of Bank of N.T. Butterfield & Son worth $2,745,000 at the end of the most recent quarter. 62.73% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

NTB has been the subject of a number of research reports. Keefe, Bruyette & Woods increased their target price on shares of Bank of N.T. Butterfield & Son from $48.00 to $50.00 and gave the stock a "market perform" rating in a research report on Friday, July 11th. Raymond James Financial reiterated an "outperform" rating and set a $50.00 target price (up previously from $44.00) on shares of Bank of N.T. Butterfield & Son in a research report on Tuesday, July 8th. Finally, Wells Fargo & Company increased their target price on shares of Bank of N.T. Butterfield & Son from $46.00 to $54.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th.

Bank of N.T. Butterfield & Son Company Profile

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management.

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