LUBBOCK - South Plains Financial, Inc. (NASDAQ:SPFI), the parent company of City Bank, has announced an increase in its quarterly cash dividend. The board of directors declared a dividend of $0.14 per share of common stock, marking an 8% rise from the previous quarter's dividend.
The enhanced dividend is scheduled to be paid on May 13, 2024, to shareholders who are on record as of April 29, 2024. This decision reflects the company's commitment to providing value to its shareholders and its confidence in the financial stability and profitability of the enterprise.
South Plains Financial, Inc. operates as the bank holding company for City Bank, which is based in Lubbock, Texas. City Bank is recognized as one of the leading independent banks in West Texas and extends its services across various other regions, including Dallas, El Paso, Greater Houston, the Permian Basin, and College Station in Texas, as well as Ruidoso in New Mexico.
The company's portfolio of services caters to both commercial and consumer financial needs, offering an array of services from commercial and retail banking to investment, trust, and mortgage services. With this dividend increase, South Plains Financial continues to demonstrate its growth and dedication to its shareholders.
The information regarding the dividend increase is based on a press release statement from South Plains Financial, Inc.
InvestingPro Insights
Amidst the announcement of South Plains Financial, Inc.'s (NASDAQ:SPFI) increased quarterly cash dividend, InvestingPro data and tips provide further insights into the company's financial health and future prospects.
Notably, SPFI has been trading at a low price-to-earnings (P/E) ratio of 6.8, which has slightly adjusted to 6.66 over the last twelve months as of Q4 2023. This suggests that the company is potentially undervalued relative to its earnings.
Moreover, the company's commitment to shareholder value is underscored by its track record of raising its dividend for 5 consecutive years, as highlighted by one of the InvestingPro Tips. Moreover, analysts have taken a positive stance on the company, with two analysts revising their earnings upwards for the upcoming period.
This could indicate a robust financial outlook for SPFI, aligning with the company's own confidence as reflected in their dividend increase.
From a valuation standpoint, SPFI's price-to-book ratio stands at a modest 1.03, and the stock offers a dividend yield of 2.05%, which is competitive considering the current market environment. These metrics, combined with the fact that SPFI has been profitable over the last twelve months, paint a picture of a financially sound company with a prudent approach to growth and shareholder returns.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers a comprehensive suite of tips. Currently, there are 7 additional InvestingPro Tips available for SPFI, which can be accessed at: https://www.investing.com/pro/SPFI. As a special offer, readers can use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, providing even greater access to valuable investment information and metrics.
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