HUNTINGTON, Ind. – Northeast Indiana Bancorp, Inc. (OTCQB: NIDB), the parent company of First Federal Savings Bank, has announced an increase in its quarterly cash dividend, marking the 30th consecutive year of dividend growth for the corporation. The dividend will rise to $0.18 per common share, up $0.01, or 5.88%, from the previous quarter.
President and CEO Michael S. Zahn expressed the company’s commitment to shareholder returns, citing robust financial health and solid capital levels as the basis for the board’s decision to increase the dividend. The new dividend is set to be paid out on November 21, 2024, to shareholders who are on record as of November 7, 2024.
This latest increase brings the annualized dividend yield to 4.09% based on the closing price of $17.60 per common share as of the last reported trade prior to the announcement. Additionally, the book value of NIDB stock was reported at $20.46 per common share as of September 30, 2024, with a total of 2,403,696 shares outstanding.
Northeast Indiana Bancorp operates through its main office in Huntington and seven additional full-service offices located in Indiana, offering a range of banking and financial brokerage services. The company’s stock is traded on the OTCQB platform under the ticker symbol “NIDB”.
The information in this article is based on a press release statement from Northeast Indiana Bancorp, Inc.
InvestingPro Insights
Northeast Indiana Bancorp’s recent dividend increase aligns with its strong financial position, as reflected in the latest InvestingPro data. The company’s P/E ratio of 9.89 suggests that the stock may be undervalued relative to its earnings, potentially offering an attractive entry point for investors seeking both growth and income.
InvestingPro Tips highlight that NIDB has maintained dividend payments for 30 consecutive years, underscoring the company’s commitment to shareholder returns mentioned in the article. This consistent dividend history is particularly noteworthy given the current dividend yield of 5.28%, which is significantly higher than the 4.09% yield mentioned in the original article, likely due to recent market movements.
Despite the positive dividend news, InvestingPro data shows a revenue decline of 6.91% over the last twelve months. However, the company remains profitable, with a healthy operating income margin of 29.48%. This profitability, combined with the company’s dividend track record, suggests that NIDB is managing its finances prudently even in the face of revenue challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into NIDB’s financial health and future prospects.
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