Cathay General Bancorp Boosts Quarterly Dividend 11.8% to $0.38
Cathay General Bancorp raised its quarterly cash dividend by 11.8% to $0.38 per share, payable March 9 to shareholders of record as of February 26. The bank’s dividend yield now stands at 2.55% with a 30% payout ratio, backed by consensus estimates forecasting 12.6% earnings growth in 2026.
1. Dividend Increase Details
On February 13, Cathay General Bancorp raised its quarterly cash dividend from $0.34 to $0.38 per share, marking an 11.8% increase. The dividend is payable on March 9 to shareholders of record as of February 26, reflecting the bank’s commitment to shareholder returns.
2. Yield and Payout Ratio
With the new dividend, Cathay’s annualized yield stands at 2.55% and its payout ratio is 30%. These metrics remain moderate relative to regional banking peers, balancing income for investors with capital retention for growth.
3. Growth Estimates and Share Performance
Analyst consensus projects a 5.3% increase in 2026 sales and 12.6% earnings growth, while the stock has gained 14.5% over the past year. The bank has a market capitalization of $3.63 billion and is rated a strong buy by analysts.
4. Historical Dividend Growth
Cathay General Bancorp has increased its dividend once over the past five years, achieving an annualized growth rate of 1.43%. The recent hike signals renewed emphasis on capital returns amid supportive earnings forecasts.