Norwood Financial hikes dividend by 3.3%

Norwood Financial Corp (NWFL), the parent company of Wayne Bank, has announced a 3.3% increase in its quarterly dividend. The Board of Directors declared a cash dividend of $0.31 per share, a $0.01 increase from the prior quarter. The dividend is scheduled for payment on February 1, 2025, to shareholders of record as of January 15, 2025.

At the current share price of $25.36, the dividend offers an attractive yield of 4.75%. This marks a continuation of the company’s commitment to delivering shareholder value through regular dividend growth, as the increase represents a 3.33% year-over-year rise compared to the fourth quarter of 2023. NWFL has raised the dividend 19 consecutive years.

Management Perspective

James O. Donnelly, President and CEO of Norwood Financial, highlighted the company’s robust financial health as a key driver for the dividend hike. “The Board is extremely pleased to provide our shareholders with this quarterly dividend. It reflects the Company’s financial strength and strong capital position which has contributed to our solid performance,” said Donnelly in the announcement.

Financial Position

Norwood Financial has demonstrated consistent operational and financial stability, enabling the company to sustain a competitive dividend yield amidst broader market challenges. Its ability to maintain and modestly grow its dividend underscores its commitment to shareholders and prudent capital management.

Conclusion

The dividend increase further solidifies Norwood Financial’s reputation for steady returns to shareholders. With a yield of 4.75%, the stock remains a compelling choice for income-focused investors.