DUNMORE, Pa. - Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC), the parent company of The Fidelity Deposit and Discount Bank, has announced an increase in its quarterly cash dividend to $0.40 per share, marking a 5% rise from the previous dividend of $0.38 per share. This increase represents the company's tenth consecutive year of dividend growth, effectively more than doubling the dividend amount over this period.
Daniel J. Santaniello, President & Chief Executive Officer, expressed pride in this achievement, attributing it to the company's strategic reinvestment aimed at creating sustainable value for shareholders and the communities it serves. He also acknowledged the support from the bank's employees, clients, shareholders, and the communities in their operational footprint.
The new dividend will be distributed on December 10, 2024, to shareholders who are on record by the close of business on November 15, 2024. Fidelity D & D Bancorp operates in several Pennsylvania counties, providing a range of banking services through its 21 full-service community offices, in addition to wealth management services through its Minersville Office in Schuylkill County.
The company has emphasized its commitment to both traditional and digital banking experiences, offering online banking and mobile app services for digital account management and transactions.
This announcement comes as a forward-looking statement, and actual results could vary due to multiple factors, including economic conditions, interest rates, competition, technological changes, and other risks. These risks are further detailed in the company's filings with the Securities and Exchange Commission.
The information for this report is based on a press release statement from Fidelity D & D Bancorp, Inc.
InvestingPro Insights
Fidelity D & D Bancorp's recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company's dividend yield stands at 2.94%, with a dividend growth rate of 5.56% over the last twelve months. This consistent dividend growth is further supported by an InvestingPro Tip, which notes that FDBC has raised its dividend for 9 consecutive years and has maintained dividend payments for an impressive 30 consecutive years.
Despite the positive dividend news, investors should be aware that FDBC's revenue growth has been challenging. The company reported a revenue decline of 16.49% over the last twelve months, with a more modest quarterly revenue decrease of 1.21% in Q2 2024. This context adds importance to the company's ability to sustain its dividend growth in the face of revenue headwinds.
On the profitability front, FDBC maintains a solid position with an operating income margin of 26.54% for the last twelve months. An InvestingPro Tip confirms that the company has been profitable over this period, which supports its ability to continue rewarding shareholders through dividends.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 14 more tips available for FDBC, providing a deeper understanding of the company's financial health and market position.
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