Stock Yards Reward Shareholders With 3.2% Dividend Hike, Shares Up

Shares of Stock Yards Bancorp SYBT gained nearly 1.9% yesterday as the company announced a quarterly dividend of 32 cents per common share, marking a 3.2% hike from the prior payout. This dividend will be paid out on Oct. 1, 2025, to shareholders of record as of Sept.15.

With this latest announcement, Stock Yards has now raised its quarterly dividend 18 times since 2011, representing a total increase of 167% over the period.

Prior to this latest hike, the company raised its dividend by 3.3% to 31 cents per share in August 2024. Based on yesterday's closing price of $77.17, its current dividend yield is 1.61% compared with the industry’s 2.41%. Notably, the company has increased its dividend payout five times in the past five years.

Dividend Yield

Further, SYBT also maintains a five-year annualized dividend growth rate of 3.38% along with a payout ratio of 29% of its earnings. This suggests the company maintains sufficient earnings to support reinvestment and future growth, while continuing to provide reasonable shareholder returns.

James A. (Ja) Hillebrand, chairman and CEO of Stock Yards, stated, “Our consistent profitability and robust capital position enable us to steadily grow dividends and enhance long-term shareholder value.”

SYBT’s Other Capital Distribution Efforts

Along with regular dividend payouts, SYBT has a share buyback program in place. On July 15, 2025, the company’s board of directors approved a new share repurchase program of up to 1 million shares for the next two years.

The company has a decent liquidity position. As of Jun 30, 2025, the total cash and cash equivalents was $451 million. The short-term debt was $133 million, and the long-term debt was $327 million.

Thus, backed by its decent liquidity profile, SYBT is likely to maintain its capital distribution activities and keep supporting shareholder value.

SYBT’s Price Performance and Zacks Rank

Over the past year, shares of Stock Yards have rallied 34.8% compared with the industry’s growth of 6.2%.

Price Performance

Currently, SYBT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Financial Firms That Announced Dividend Hikes

A few days ago, M&T Bank Corporation MTB announced an increase in its quarterly cash dividend. The bank has raised its dividend 11.1% from the prior payout to $1.50 per share. The dividend will be paid out on Sept. 30, 2025, to shareholders of record on Sept. 2.

Prior to the recent hike, in May 2025, MTB increased its dividend by 4% to $1.35 per share. In the last five years, the company has increased its dividend four times with an annualized growth rate of 5.36%.

This month, Virtus Investment Partners VRTS announced an annual hike in its quarterly dividend for the eighth consecutive year. The company declared a quarterly cash dividend of $2.40 per share, indicating a nearly 6.7% rise from the prior payout. The dividend will be paid out on Nov. 14, 2025, to its shareholders of record as of Oct. 31.

Prior to this, in August 2024, VRTS raised its dividend by 18% to $2.25 per share. The company has increased its dividend payout six times in the past five years. 

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This article originally published on Zacks Investment Research (zacks.com).

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