Heritage Financial Corporation (NASDAQ:HFWA) Increases Dividend to $0.25 Per Share

Key Points

• Heritage Financial raised its quarterly dividend to $0.25 per share, a 4.2% increase from the prior $0.24 payout. The dividend is payable on August 19 to shareholders of record on August 5, with a yield of about 3.3%.
• The company has now increased its dividend every year for 14 straight years, and its payout ratio of 42.5% suggests the dividend is well covered by earnings. Analysts expect further coverage improvement next year based on projected earnings.
• Heritage Financial also reported strong quarterly earnings, posting $0.57 EPS versus the $0.44 consensus estimate. Shares rose on the news, and the stock has traded near its 52-week high.

Heritage Financial Corporation (NASDAQ:HFWA - Get Free Report) announced a quarterly dividend on Wednesday, July 22nd. Investors of record on Wednesday, August 5th will be given a dividend of 0.25 per share by the financial services provider on Wednesday, August 19th. This represents a c) dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, August 5th. This is a 4.2% increase from Heritage Financial's previous quarterly dividend of $0.24.

Heritage Financial has raised its dividend by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 14 years. Heritage Financial has a payout ratio of 42.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Heritage Financial to earn $2.80 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 34.3%.

Heritage Financial Price Performance

HFWA stock traded up $0.11 on Thursday, reaching $30.29. 1,100,712 shares of the company's stock were exchanged, compared to its average volume of 307,162. The stock has a fifty day moving average of $28.51 and a 200-day moving average of $27.11. The firm has a market cap of $1.25 billion, a PE ratio of 14.85 and a beta of 0.49. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.04. Heritage Financial has a twelve month low of $21.32 and a twelve month high of $31.25.

Heritage Financial (NASDAQ:HFWA - Get Free Report) last released its earnings results on Thursday, July 23rd. The financial services provider reported $0.57 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.13. Heritage Financial had a return on equity of 8.71% and a net margin of 20.50%. As a group, equities analysts predict that Heritage Financial will post 2.39 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Donald Hinson sold 3,842 shares of the firm's stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $28.37, for a total value of $108,997.54. Following the completion of the transaction, the chief financial officer owned 41,241 shares in the company, valued at $1,170,007.17. This trade represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 1.49% of the company's stock.

Institutional Investors Weigh In On Heritage Financial

Institutional investors and hedge funds have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Heritage Financial by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,060 shares of the financial services provider's stock valued at $488,000 after acquiring an additional 881 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of Heritage Financial by 4.2% in the first quarter. Empowered Funds LLC now owns 123,798 shares of the financial services provider's stock valued at $3,012,000 after purchasing an additional 4,947 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Heritage Financial by 7.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 78,130 shares of the financial services provider's stock valued at $1,901,000 after purchasing an additional 5,417 shares during the last quarter. Jane Street Group LLC grew its position in shares of Heritage Financial by 437.3% in the first quarter. Jane Street Group LLC now owns 107,482 shares of the financial services provider's stock valued at $2,615,000 after purchasing an additional 87,479 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Heritage Financial by 27,871.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,958 shares of the financial services provider's stock worth $47,000 after purchasing an additional 1,951 shares in the last quarter. 78.30% of the stock is currently owned by hedge funds and other institutional investors.

About Heritage Financial

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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