ITHACA, N.Y. - Tompkins (NYSE:TMP) Financial Corporation (NYSE American:TMP) has announced an increase in its regular quarterly cash dividend, set to be paid out in mid-November. Shareholders can expect to receive $0.62 per share, which marks a modest rise from previous payouts.
This latest dividend, payable on November 15, 2024, to shareholders on record as of November 8, 2024, represents a 1.6% increase over the third quarter's dividend and a 3.3% increase compared to the fourth quarter of the previous year. The adjustment equates to an incremental $0.01 and $0.02 per share increase, respectively, illustrating a steady growth in shareholder returns.
Tompkins Financial is a diversified financial services company with operations spanning across various regions of New York and into Southeastern Pennsylvania. Its business includes Tompkins Community Bank, Tompkins Insurance Agencies, Inc., and wealth management services via Tompkins Financial Advisors.
The decision by Tompkins Financial's Board of Directors to raise the dividend reflects a continued commitment to providing value to its investors. It is important to note that this information is based on a press release statement from the company and represents a factual update regarding the company's dividend policy.
Investors in financial stocks often monitor dividend changes as indicators of a company's financial health and management's confidence in future cash flows. While the increase is modest, it is a positive sign for shareholders looking for steady income from their investment in Tompkins Financial.
The company's strategic presence in key regions of New York and Pennsylvania, along with its comprehensive suite of banking, insurance, and wealth management services, positions it as a noteworthy entity in the financial sector. With this dividend increase, Tompkins Financial continues its pattern of sharing financial success with its shareholders.
In other recent news, Tompkins Financial Corporation has been upgraded from Market Perform to Outperform by Keefe, Bruyette & Woods (KBW). This upgrade was accompanied by an increase in the firm's price target for Tompkins Financial, from $59.00 to $68.00. This follows a period of underperformance by Tompkins Financial, as it lagged 94% behind its peers on the KRX index since the end of March 2020.
KBW attributes this underperformance to net interest margin (NIM) compression. However, the firm highlights Tompkins Financial's historically steady performance throughout economic cycles, its above-peer returns, best-quartile credit performance, and lower-than-peer deposit costs.
With the normalization of the rate environment, KBW anticipates a rebound in Tompkins Financial's NIM, leading to enhanced returns and the potential recapture of the bank's historical valuation premium. This upgrade and price target adjustment reflect KBW's positive outlook on Tompkins Financial's ability to navigate the changing economic landscape. These are among the recent developments concerning Tompkins Financial Corporation.
InvestingPro Insights
Tompkins Financial Corporation's recent dividend increase aligns with its impressive track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 3.94% as of the latest available information. More notably, an InvestingPro Tip reveals that Tompkins Financial has raised its dividend for 34 consecutive years, underscoring its commitment to consistent shareholder value.
This long-standing dividend growth is particularly significant in the context of the company's financial performance. Despite a 24% year-over-year revenue decline in the last twelve months as of Q2 2024, Tompkins Financial has maintained profitability, with a basic EPS of $1.0 for the same period. This resilience is further highlighted by another InvestingPro Tip, which indicates that the company has maintained dividend payments for 51 consecutive years.
The recent 38.19% price total return over the past six months suggests investor confidence in Tompkins Financial's strategy and financial stability. For those seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 8 more tips available for Tompkins Financial on the platform.
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