Hingham Institution for Savings (HIFS) will increase its quarterly dividend by another 4.4 percent to 47 cents per share in 2020. Also a $0.70 per share special dividend was announced by the savings bank this year. If we include the previously announced dividend hikes in 2020 the total dividend growth YTD is 14.6 percent.
Both the increased quarterly dividend of 47 cents and the 70 cent special dividend will be paid on January 13, 2021 to stockholders of record as of January 4, 2021. A regular annual dividend rate of $1.88 per share yields 0.8% at a stock price of $223.63.
Hingham Institution for Savings now has reported 13 consecutive years of annual dividend increases. In November 2019, the Bank declared a special dividend of $0.60 per share.
In a press release dated November 24, 2020 the company announces the dividend hike: Robert H. Gaughen, Jr., Chairman and Chief Executive Officer of the Bank, in announcing the dividend, stated, “The Bank continues to produce strong returns on equity capital. The Bank regularly considers all capital allocation options and continues to return capital to the ownership through both regular and special dividends. This will be our 108th consecutive quarterly dividend and we have consistently increased regular quarterly cash dividends over the last twenty-five years. The Bank has also declared special cash dividends in each of the last twenty-six years, typically in the fourth quarter. The Bank sets the level of the special dividend based on the Bank’s capital requirements and the prospective return on other capital allocation options. This may result in special dividends, if any, significantly above or below the regular quarterly dividend. Future regular and special dividends will be considered by the Board of Directors on a quarterly basis.”
Hingham Institution for Savings will now pay an estimated $4 million in dividends to its shareholders annually. The company announced four dividend hikes in 2019 and has now reported 4 increases year-to-date in 2020.
Hingham Institution for Savings is a Massachusetts-chartered savings bank located in Hingham, Massachusetts. Incorporated in 1834, it is one of America’s oldest banks. The Bank’s Main Office is located in Hingham and the Bank maintains offices on the South Shore, in Boston (South End and Beacon Hill), and on the island of Nantucket. The Bank also provides commercial mortgage lending and private banking services in the Greater Washington D.C. metropolitan area. Hingham Institution for Savings has paid a dividend to shareholders every year since 1993.