First Business Financial Services, the parent company of First Business Bank, has recently announced an increase in its quarterly cash dividend. The board of directors approved the new dividend amount of 25 cents per share, which equates to an annual dividend of $1.
The dividend will be payable on February 21 to shareholders of record as of February 8. This represents a 10% increase from the previous quarterly dividend declared in October 2023. Additionally, based on the fourth quarter 2023 earnings per share, the dividend payout ratio is estimated to be 22%.
With the company's closing share price on January 26, the new dividend reflects a dividend yield of 2.53%. This provides an attractive return for shareholders.
In addition to the common stock dividend, First Business Financial Services also declared a dividend of $17.50 per share on its 7% Series A Preferred Stock. Shareholders of record as of February 29 will receive this dividend on March 15.
The increased dividends demonstrate the company's commitment to rewarding its shareholders and its confidence in its financial performance.
