Cathay General Bancorp Declares $0.34 Per Share Dividend

Rhea-AI Summary

Cathay General Bancorp (CATY) has declared a cash dividend of $0.34 per common share, payable on March 11, 2024, to stockholders of record on February 28, 2024.

Insights

Financial Analyst

The declaration of a cash dividend by Cathay General Bancorp represents a distribution of earnings to shareholders, reflecting the company's current financial health and its management's confidence in its ability to generate cash. This is a tangible return on investment for stockholders and can be seen as a positive signal to the market, often resulting in a favorable impact on the stock price. Dividends are also a critical component of the total return on a stock, complementing potential capital gains.

It is important to analyze the dividend yield, which is the dividend per share divided by the stock price. A higher yield can make the stock more attractive to income-seeking investors, but it is essential to balance this with the company's payout ratio—the percentage of earnings paid out as dividends. A payout ratio that is too high may not be sustainable in the long term. Comparing the announced dividend to historical payouts can provide insights into the company's dividend policy and growth.

Market Research Analyst

In the context of the broader banking sector, dividends can reflect stability and a mature business model. Investors often look to financial institutions like Cathay General Bancorp as a source of steady income, especially in volatile markets. The declaration of a dividend can therefore be a sign of Cathay General Bancorp's operational stability and commitment to delivering shareholder value.

Additionally, the timing and consistency of dividend payments can influence investor sentiment. Regular and predictable dividends are typically well-received. It's also worth considering the ex-dividend date, which is the cutoff date to be eligible for the dividend payment. In this case, the stock will trade ex-dividend shortly before February 28, 2024. This often causes a temporary drop in the stock price, reflecting the value of the dividend being removed from the company's assets.

LOS ANGELES--(BUSINESS WIRE)-- Cathay General Bancorp (Nasdaq: CATY) announced that its Board of Directors declared a cash dividend of thirty-four cents per common share, payable on March 11, 2024, to stockholders of record at the close of business on February 28, 2024.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is a publicly traded company (Nasdaq: CATY) and is the holding company for Cathay Bank, a California state-chartered bank. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Founded in 1962, Cathay Bank offers a wide range of financial services and currently operate over 60 branches across the United States in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada, and New Jersey. Overseas, it has a branch outlet in Hong Kong, and a representative office in Beijing, Shanghai, and Taipei. To learn more about Cathay Bank, please visit www.cathaybank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240215838296/en/

Heng W. Chen

(626) 279-3652

Source: Cathay General Bancorp

FAQ

What dividend has Cathay General Bancorp declared?

Cathay General Bancorp has declared a cash dividend of $0.34 per common share.

When will the dividend be payable?

The dividend will be payable on March 11, 2024.

Who are eligible to receive the dividend?

Stockholders of record at the close of business on February 28, 2024, are eligible to receive the dividend.