Bullish indicating open at $55-$60, IPO prices at $37
SAN RAFAEL, Calif. - Westamerica Bancorporation (NASDAQ:WABC) announced on Monday an increase in its quarterly cash dividend, raising the amount to $0.46 per share, up from $0.44 in the previous quarter. Shareholders on record as of May 5, 2025, will be eligible for the dividend, which is payable on May 16, 2025. The increase brings the annual dividend yield to 3.69%, reflecting the company’s remarkable 32-year streak of consecutive dividend increases, according to InvestingPro data.
The decision to increase the dividend was made by the company’s Board of Directors and reflects Westamerica’s consistent earnings, financial resilience, and prudent risk management. Chairman, President, and CEO David Payne remarked on the dividend increase as a recognition of the firm’s stable earnings and strong financial position. InvestingPro analysis supports this view, showing the company maintains a GREAT financial health score, with particularly strong profitability metrics. The stock currently trades below its Fair Value, making it one of several opportunities in the undervalued stocks category.
Westamerica Bancorporation reported a net income of $31.0 million for the first quarter ended March 31, 2025, which translates to $1.16 diluted earnings per common share. The $1.27 billion market cap company, through its subsidiary Westamerica Bank, operates numerous banking and trust offices across Northern and Central California. Trading at a P/E ratio of 9.47, the stock presents an attractive valuation compared to industry peers.
The company’s forward-looking statements, as per the Private Securities Litigation Reform Act of 1995, indicate plans and objectives for future operations but also acknowledge the inherent risks and uncertainties in such predictions. Factors that could affect actual results include changes in economic conditions, competitive pressures, and legislative changes, among others, as outlined in the company’s most recent filings with the Securities and Exchange Commission.
This dividend announcement is based on a press release statement from Westamerica Bancorporation. The information herein is presented without any endorsement of claims or promotional language, providing a factual report on the company’s financial distributions to its shareholders.
In other recent news, Westamerica Bancorporation has announced a stock repurchase program, approved by its Board of Directors. The plan involves buying back up to 2,000,000 shares, which represents approximately 7.5 percent of its common stock outstanding as of December 31, 2024. The repurchase is scheduled for completion by March 31, 2026, and may occur on the open market or through privately negotiated transactions. This decision highlights Westamerica’s strong financial position and consistent earnings performance, reflecting the company’s confidence in its financial health and future prospects. Chairman, President, and CEO David Payne emphasized the company’s financial strength and reliable earnings stream. The strategy aims to potentially increase the value of remaining shares, benefiting shareholders. This move is part of Westamerica Bancorporation’s broader financial management practices and is subject to market conditions. The company acknowledges that forward-looking statements involve uncertainties, with factors such as market risks and economic conditions potentially affecting actual results.
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