VersaBank (NASDAQ:VBNK) Declares Dividend Increase – $0.03 Per Share

VersaBank (NASDAQ:VBNK) declared a quarterly dividend on Wednesday, March 5th, RTT News reports. Shareholders of record on Friday, April 4th will be paid a dividend of 0.025 per share on Wednesday, April 30th. This represents a $0.10 dividend on an annualized basis and a yield of 0.98%. The ex-dividend date of this dividend is Friday, April 4th. This is a 41.2% increase from VersaBank’s previous quarterly dividend of $0.02.

VersaBank has a payout ratio of 3.8% meaning its dividend is sufficiently covered by earnings. Analysts expect VersaBank to earn $2.23 per share next year, which means the company should continue to be able to cover its $0.07 annual dividend with an expected future payout ratio of 3.1%.

VersaBank Price Performance

Shares of VersaBank stock opened at $10.23 on Wednesday. The company has a 50 day simple moving average of $12.11 and a two-hundred day simple moving average of $13.86. The firm has a market cap of $332.67 million, a PE ratio of 9.30 and a beta of 0.93. VersaBank has a 1 year low of $9.48 and a 1 year high of $18.38.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Roth Mkm lowered VersaBank from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $22.00 to $10.40 in a research report on Thursday, March 6th. Raymond James reiterated an “outperform” rating on shares of VersaBank in a research report on Thursday, March 6th. Finally, Roth Capital set a $10.40 price objective on shares of VersaBank in a research note on Thursday, March 6th.

About VersaBank

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages.