Tectonic Financial, Inc. (NASDAQ:TECTP), a Texas-based state commercial bank, announced on Friday that its Board of Directors has declared quarterly dividends for both its preferred and common stock shareholders as of July 26, 2024.
For the preferred stock, a cash dividend of $0.3144353 per share has been set for the 9.00% Fixed-to-Floating Rate Series B Noncumulative Perpetual Preferred Stock. This dividend is attributed to the period starting May 15, 2024, and ending just before August 15, 2024. Shareholders on record by the end of the business day on August 5, 2024, will be eligible for the dividend, which is scheduled to be paid on August 15, 2024.
Additionally, the company has declared a cash dividend of $0.10 per share for its common stock. Similar to the preferred stock dividend, this too is payable on August 15, 2024, to shareholders who are on record as of the close of business on August 5, 2024.
This announcement comes directly from a recent 8-K filing with the Securities and Exchange Commission. Tectonic Financial, known previously as T Acquisition, Inc., has been operating under its current name since January 31, 2019. The bank is headquartered in Dallas, Texas, and is recognized under the SIC code 6022, which classifies it among state commercial banks.
The declaration of these dividends reflects Tectonic Financial's commitment to deliver value to its shareholders and demonstrates the company's financial distributions for the current quarter. The dividends are a part of the company's regular financial practices and are in line with its established dividend policy.
InvestingPro Insights
Tectonic Financial, Inc. (NASDAQ:TECTP) remains a noteworthy player for dividend investors, especially with its recent announcement of quarterly dividends for preferred and common stock shareholders. The company's dedication to shareholder returns is underscored by a robust dividend yield of 8.68%, which is particularly attractive in the current market. With a consistent payout, TECTP continues to be a beacon for those seeking regular income streams from their investments.
InvestingPro data reveals that Tectonic Financial has maintained a gross profit equal to its revenue at $64.89 million over the last twelve months as of Q1 2024. This indicates a strong profit margin, which is essential for sustaining dividend payments. Moreover, the company's basic earnings per share (EPS) of $1.7 and diluted EPS of $1.65 reflect a solid earnings foundation, which can reassure investors about the company's ability to maintain its dividend distributions.
While Tectonic Financial has experienced a slight dip in revenue growth, with a -4.05% change over the last twelve months and a -5.56% change on a quarterly basis, the company's overall performance and commitment to dividends may outweigh these concerns for long-term investors. Notably, the stock has seen a 11.88% one-year price total return, signaling potential for both income and growth components in an investment portfolio.
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