VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES QUARTERLY CASH DIVIDEND

Rhea-AI Summary

Virginia National Bankshares Corporation (VABK) declares a quarterly cash dividend of $0.33 per share, offering shareholders a 4.42% annual yield based on the closing stock price on February 28, 2024.

Insights

Financial Analyst

The declaration of a quarterly cash dividend of $0.33 per share by Virginia National Bankshares Corporation offers a tangible return to shareholders and the stated annual yield of 4.42% is a critical figure for income-focused investors. This yield is particularly attractive if it exceeds the average dividend yield of the banking sector and the broader market. It's important to compare this yield to the risk-free rate, such as the yield on U.S. Treasury securities, to assess the risk premium offered by the bank's shares.

Investors should also consider the payout ratio, which is the proportion of earnings paid out as dividends. A sustainable payout ratio suggests the dividend is well-covered by earnings, reducing the risk of a cut in the future. However, a high payout ratio could indicate limited room for future dividend growth or reinvestment in the company's operations.

Market Research Analyst

From a market perspective, dividend announcements can influence investor sentiment and stock price. The consistency of dividend payments and any changes in the dividend amount can signal the company's financial health and management's confidence in future cash flows. A stable or increasing dividend may attract income investors and could lead to a more favorable view of the stock, potentially supporting its price.

However, it is also essential to consider the broader economic context, including interest rate trends and economic growth prospects, which can impact the attractiveness of dividend-paying stocks. In a low-interest-rate environment, for example, high-dividend stocks can become more sought after, as they offer better yields than many fixed-income investments.

CHARLOTTESVILLE, Va., Feb. 29, 2024 /PRNewswire/ -- Virginia National Bankshares Corporation (the "Company") (NASDAQ: VABK) announced today that on February 28, 2024 its Board of Directors declared a quarterly cash dividend of $0.33 per share to be paid on March 28, 2024 to shareholders of record as of March 14, 2024. The quarterly cash dividend represents an annual yield to shareholders of approximately 4.42% based on the closing price of the Company's common stock on February 28, 2024.

About Virginia National Bankshares Corporation

Virginia National Bankshares Corporation, headquartered in Charlottesville, Virginia, is the bank holding company for Virginia National Bank. The Bank has eight banking offices throughout Fauquier and Prince William counties, three banking offices in Charlottesville and Albemarle County, and banking offices in Winchester and Richmond, Virginia. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. Investment management services are offered through Masonry Capital Management, LLC, a registered investment adviser and wholly-owned subsidiary of the Company.

The Company's common stock trades on the Nasdaq Capital Market under the symbol "VABK." Additional information on the Company is also available at www.vnbcorp.com. 

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SOURCE Virginia National Bankshares Corporation

FAQ

What dividend did Virginia National Bankshares Corporation (VABK) declare?

Virginia National Bankshares Corporation (VABK) declared a quarterly cash dividend of $0.33 per share.

When will the dividend be paid to shareholders?

The dividend will be paid on March 28, 2024, to shareholders of record as of March 14, 2024.

What is the annual yield for shareholders based on the dividend and stock price?

The annual yield for shareholders is approximately 4.42% based on the closing price of the Company's common stock on February 28, 2024.