Heritage Financial Corporation (NASDAQ:HFWA) Declares Quarterly Dividend of $0.24

Key Points

• Declared dividend: Heritage Financial announced a quarterly dividend of $0.24 per share (annualized $0.96), payable May 20 to shareholders of record on May 6, implying a dividend yield of about 3.5%.
• Dividend sustainability: The company has raised its dividend for 14 consecutive years and currently has a payout ratio of 42.5%; analysts forecast higher EPS next year (around $2.90), implying a future payout ratio near 33%, which suggests the dividend is well covered.
• Recent performance and outlook: Heritage beat quarterly expectations with $0.59 EPS versus $0.31 estimated, trades near $27.70, and carries a consensus analyst rating of "Moderate Buy" with an average price target of about $31.00.

Heritage Financial Corporation (NASDAQ:HFWA - Get Free Report) announced a quarterly dividend on Wednesday, April 22nd. Investors of record on Wednesday, May 6th will be given a dividend of 0.24 per share by the financial services provider on Wednesday, May 20th. This represents a c) dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Wednesday, May 6th.

Heritage Financial has raised its dividend by an average of 0.0%annually over the last three years and has raised its dividend annually for the last 14 consecutive years. Heritage Financial has a dividend payout ratio of 42.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Heritage Financial to earn $2.90 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 33.1%.

Heritage Financial Price Performance

Shares of NASDAQ:HFWA traded up $0.37 during mid-day trading on Thursday, reaching $27.70. The stock had a trading volume of 318,472 shares, compared to its average volume of 294,161. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.05. The company has a market cap of $1.14 billion, a P/E ratio of 14.13 and a beta of 0.49. Heritage Financial has a 1 year low of $21.32 and a 1 year high of $28.98. The business's 50 day moving average price is $26.47 and its 200 day moving average price is $25.02.

Heritage Financial (NASDAQ:HFWA - Get Free Report) last posted its earnings results on Thursday, April 23rd. The financial services provider reported $0.59 EPS for the quarter, topping analysts' consensus estimates of $0.31 by $0.28. Heritage Financial had a return on equity of 8.61% and a net margin of 20.10%. Research analysts expect that Heritage Financial will post 2.53 EPS for the current fiscal year.

Analysts Set New Price Targets

HFWA has been the topic of several analyst reports. Stephens boosted their price objective on Heritage Financial from $28.00 to $30.00 and gave the stock an "equal weight" rating in a research note on Monday, January 26th. Piper Sandler reduced their price objective on Heritage Financial from $35.00 to $34.00 and set an "overweight" rating on the stock in a research note on Thursday, April 2nd. Wall Street Zen raised Heritage Financial from a "sell" rating to a "hold" rating in a research note on Saturday, April 4th. Weiss Ratings raised Heritage Financial from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday, March 2nd. Finally, DA Davidson boosted their price objective on Heritage Financial from $29.00 to $32.00 and gave the stock a "buy" rating in a research note on Friday, January 23rd. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $31.00.

Heritage Financial Company Profile

Heritage Financial Corporation NASDAQ: HFWA is a bank holding company headquartered in Spokane, Washington. Through its primary subsidiary, Heritage Bank, the company provides a comprehensive range of banking and financial services to both individual and commercial clients. Heritage Bank's offerings encompass deposit products, lending solutions, treasury and cash management services, mortgage banking, and wealth management, positioning the organization as a full-service community bank.

The company's lending portfolio includes commercial real estate loans, agricultural loans, small business administration (SBA) loans, construction and development financing, and a variety of consumer mortgage products.

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