Cathay General Dividend Yield Tops Industry at 2.9%, EPS Set to Grow 12.6%
Cathay General’s shares are up 8.33% YTD and yield 2.9% from a $0.34 quarterly dividend, topping the Banks - West industry's 2.77%. Its annualized payout rose 11.8% to $1.52 with a 30% payout ratio, and 2026 EPS are estimated at $5.11, a 12.6% increase.
1. YTD Performance and Dividend Yield
Cathay General’s stock has gained 8.33% year to date while paying a quarterly dividend of $0.34, translating to a 2.9% yield. This outpaces the Banks - West industry average of 2.77% and dwarfs the S&P 500’s 1.35% yield, highlighting its appeal to income investors.
2. Dividend Growth History
The company’s annualized dividend of $1.52 represents an 11.8% year-over-year increase. Over the past five years, Cathay General has raised its dividend only once, averaging 2.11% growth annually, underscoring a conservative but steady approach.
3. Payout Ratio and Future Earnings Estimates
With a 30% payout ratio, Cathay General retains the bulk of its earnings for reinvestment. Analysts forecast 2026 earnings of $5.11 per share, a 12.56% increase over prior-year results, supporting potential future dividend expansion.