Commerce Bancshares raises dividend by 7%

Published 31/01/2025, 19:50
Commerce Bancshares raises dividend by 7%

KANSAS CITY, Mo. - Commerce Bancshares, Inc. (NASDAQ: NASDAQ:CBSH), a regional bank holding company, announced an increase in its quarterly dividend to $0.275 per share on the company’s common stock, marking a 7% rise from the previous adjusted dividend of $0.257. According to InvestingPro data, the company has maintained dividend payments for 54 consecutive years, with a current dividend yield of 1.62%. This latest increase continues the company’s 57-year streak of annual dividend growth. The dividend is set to be paid on March 25, 2025, to shareholders recorded by the close of business on March 7, 2025.

The company, with $32.0 billion in assets as of December 31, 2024, provides a comprehensive suite of banking services through its subsidiaries. With an impressive one-year return of 37.01% and an overall financial health rating of "GREAT" on InvestingPro, the bank demonstrates strong market performance. Services include payment solutions, investment management, and securities brokerage. Commerce Bank, a subsidiary of Commerce Bancshares, has a history of nearly 160 years and operates full-service banking facilities in several Midwest states as well as commercial and wealth offices in select regions outside the Midwest.

This dividend announcement follows Commerce Bancshares’ tradition of returning value to its shareholders and demonstrates its financial resilience. The consistent increase in dividends reflects the company’s commitment to its shareholders and its confidence in the bank’s financial stability and growth prospects, supported by six analysts recently revising their earnings expectations upward and the company maintaining profitability over the last twelve months.

The information for this report is based on a press release statement from Commerce Bancshares, Inc.

In other recent news, Commerce Bancshares reported strong fourth-quarter earnings that exceeded analyst estimates. The bank posted earnings of $1.01 per share, surpassing the consensus estimate of $0.92. Revenue was reported at $422.08 million, exceeding expectations of $416.66 million. Analyst firm Piper Sandler has raised its price target for Commerce Bancshares to $72, maintaining a neutral rating. The firm has increased its earnings per share estimates for the bank for the years 2025 and 2026, reflecting an improved forecast for the bank’s net interest income and operating expenses. Despite these positive developments, Piper Sandler analysts maintain a neutral stance on the stock due to perceived limited opportunities for additional valuation growth. These are recent developments concerning Commerce Bancshares.

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