INDIANA, Pa. - S&T Bancorp Inc. (NASDAQ: STBA), the parent company of S&T Bank, has declared a quarterly cash dividend of $0.33 per share, marking a $0.01 or 3.13 percent increase from the $0.32 dividend distributed in the corresponding period last year. The dividend, announced today, is based on the company's performance and will be payable on May 23, 2024, to shareholders of record as of May 9, 2024.
The modest increase in the dividend reflects a continued commitment to shareholder returns, with the annualized yield calculated at 4.24 percent based on the closing price of $31.15 on April 23, 2024. This decision by the board of directors supports the company's track record of delivering consistent shareholder value.
S&T Bancorp Inc., with a market capitalization of $9.5 billion, operates primarily through its principal subsidiary, S&T Bank, which has a history dating back to 1902. The bank serves customers in Pennsylvania and Ohio and was recognized by Forbes as a 2023 Best-in-State Bank. The company's shares are publicly traded on the NASDAQ Global Select Market.
This announcement is based on a press release statement from S&T Bancorp Inc. and reflects only the key financial information pertaining to the dividend declaration. It does not include any promotional content or subjective claims from the company. The information provides shareholders and potential investors with relevant data regarding the latest dividend distribution and the company's commitment to maintaining its practice of providing returns to its investors.
InvestingPro Insights
S&T Bancorp Inc. (NASDAQ: STBA) has demonstrated a strong commitment to shareholder returns, as evidenced by the recent dividend increase. Here are some key insights based on real-time data from InvestingPro that may be of interest to investors:
With a market capitalization of $1.19 billion, S&T Bancorp Inc. trades at a P/E ratio of 8.74, closely aligned with the adjusted P/E ratio for the last twelve months as of Q1 2024 at 8.73. This valuation metric suggests that the company's stock is trading at a level consistent with its earnings. Furthermore, the company's price/book ratio stands at 0.92, indicating that the stock may be undervalued relative to its net asset value.
The annualized dividend yield of 4.24 percent is particularly attractive, especially in the current market environment. This yield is supported by the company's history of maintaining dividend payments for 36 consecutive years, a testament to its stability and reliability as an income-generating investment.
Investors should also note that S&T Bancorp Inc. has experienced a significant price uptick of 27.48 percent over the last six months, reflecting positive market sentiment towards the company. This performance is a key factor to consider when evaluating the stock's potential for capital appreciation in addition to its dividend yield.
However, there are areas where investors should exercise caution. According to InvestingPro Tips, two analysts have revised their earnings projections downwards for the upcoming period, and the company suffers from weak gross profit margins. Moreover, net income is expected to drop this year, which could impact future dividends and overall financial health.
For those seeking more comprehensive analysis and additional InvestingPro Tips, there are 8 more tips available on InvestingPro for S&T Bancorp Inc. To access these insights and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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