MADISON, Wis. - First Business Financial (NASDAQ:FBIZ) Services, Inc., known as First Business Bank (NASDAQ:FBIZ), has declared a consistent quarterly cash dividend of $0.25 per common share, maintaining the same dividend amount as the previous quarter.
With the stock closing at $34.24 on Friday, this dividend represents a yield of 2.92%. The declared dividend is based on the company's first-quarter 2024 earnings per share and signifies a 24% dividend payout ratio.
The upcoming dividend is scheduled to be paid on May 22, 2024, to shareholders who are on record as of May 9, 2024. In addition to the common stock dividend, First Business Bank's board of directors also announced a dividend for the 7% Series A Preferred Stock, set at $17.50 per share, which will be payable on June 17, 2024, to shareholders of record as of May 31, 2024.
First Business Bank focuses on various segments of business banking, including commercial banking, specialty finance, private wealth, and bank consulting services. It operates through its wholly owned subsidiary, First Business Financial Services, Inc., and offers specialty finance solutions through another subsidiary, First Business Specialty Finance, LLC.
The company's press release also contained forward-looking statements regarding its future plans and objectives. Still, it is important to note that such statements are subject to uncertainties and actual results may differ materially from those projected.
Investors are advised that this information is based on a press release statement from First Business Financial Services, Inc. and should consider the various factors that could influence the company's future results as disclosed in their filings with the Securities and Exchange Commission, including the annual and quarterly reports.
InvestingPro Insights
First Business Financial Services, Inc. (NASDAQ:FBIZ) continues to demonstrate its commitment to shareholder returns, with a notable track record of raising its dividend for 11 consecutive years. In addition to this, the company has maintained dividend payments for an impressive 20 consecutive years, signaling a strong focus on providing consistent returns to its investors. These achievements are particularly significant for dividend-seeking shareholders and reflect the company's stable financial management.
Analyzing the company's financial health through InvestingPro data, First Business Bank's market capitalization stands at $283.81 million, with a price-to-earnings (P/E) ratio of 7.93, slightly adjusting to 8.08 over the last twelve months as of Q1 2024. This indicates a potentially undervalued stock in comparison to industry averages, which could be attractive to value investors.
Moreover, the company's revenue growth over the last twelve months was a modest 0.37%, with a slight increase in quarterly revenue growth at 1.16% for Q1 2024. Despite challenges in gross profit margins, the company remains profitable with a solid operating income margin of 35.64% over the same period.
For those considering an investment in First Business Bank, it's noteworthy that analysts have revised their earnings upwards for the upcoming period, and predict the company will remain profitable this year, as evidenced by its performance over the last twelve months. This could suggest a positive outlook for the company's future financial performance.
For a deeper dive into First Business Bank's financials and to access additional InvestingPro Tips, visit https://www.investing.com/pro/FBIZ. Currently, there are 6 more tips available on InvestingPro for those interested in a comprehensive analysis. Enhance your investment strategy with these insights and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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