Computer Services (CSVI) will raise its quarterly dividend by 19.1 percent to 25 cents per share in 2020. This comes after a 16.7 percent hike to a split adjusted $0.21 per share in 2019 and will mark the 49th consecutive year of annual dividend increases by the it services company.
The next dividend of $0.25 per share is payable on September 25, 2020, to shareholders of record as of the close of business on September 1, 2020. A new indicated annual dividend rate of $1.00 per share yields 1.7% at a stock price of $59.50.
CSI announced the dividend hike in a press release dated July 13, 2020: “We are pleased to announce our 49th consecutive year of increased cash dividends paid to stockholders,” stated Chairman and CEO Steven A. Powless. “The new dividend amount represents a 19.1% increase over the cash dividend per share paid in the previous four quarters. We expect to fund the increased dividend with our strong cash flow from operations.
“Last year, CSI reported its 20th consecutive year of increased revenues and 23rd consecutive year of increased net income. We are very proud of our long-term growth record, including 49 years of growing our cash dividend. In addition to building shareholder value through our dividend program, we remain focused on using our strong financial position and cash flow to invest in CSI’s technology, infrastructure and people to support our continued growth,” Powless concluded.
After this latest dividend increase Computer Services will pay an estimated $28 million in dividends to shareholders annually. Because of the double digit dividend hike announced in 2020 and the track record of more than 25 consecutive years of dividend increases Computer Services is one of the very few dividend hike stars this year.
Computer Services, Inc. (CSI), including its subsidiaries, delivers core processing, digital banking, managed services, payments processing, print and electronic distribution, treasury management and regulatory compliance solutions to financial institutions and corporate customers in the United States. CSI derives its revenues from processing services, maintenance and support fees; software licensing and installation fees; professional services; and equipment and supply sales. The company's integrated banking solutions include digital banking; check imaging; cash management; branch and merchant capture; print and mail, and electronic document delivery services; corporate intranets; secure Web hosting; e-messaging; teller and platform services; ATM and debit card service and support; payments solutions; risk assessments; network management; cloud-based managed services; and compliance software and services for regulatory compliance, homeland security, anti-money laundering, anti-terrorism financing and fraud prevention. CSI was incorporated on March 19, 1965 and paid its first dividend in 1968.