Banking, finance, and taxes
Dividend Watch: The Stock Dividend & High-Yield Bank Dividends (VLY)
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Valley National Bancorp (NYSE: VLY) was recently featured in our dividend watch for the already-high dividend yields that came out before the rest of the TARP banks were allowed to reinstate their payouts. We had noted that the bank also paid out a stock dividend as well. The news today is that Valley National is paying a 5% stock dividend to its shareholders.
This is the holding company for Valley National Bank with close to 200 branches in New York and New Jersey. Where this one gets interesting is that it has gone one for far longer than we even looked. The bank said that the stock dividend has been paid out each and every year since 1992. The bank also has a cash dividend of about 5% on an annualized basis.
Its board approved the payout as payable May 20, 2011 for shareholders of record on May 6, 2011. Shares are down 0.5% at $13.73 so far today and its 52-week trading range is $12.33 to $16.19.
The stock’s performance was greatly interrupted by the recession. Still, at least the bank is intent in returning capital to shareholders and making shareholder-friendly decisions.
JON C. OGG
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