Independent Bank Corp. (INDB) May Be a Dividend Investor's Dream

Independent Bank Corp. (INDB) is a finance company with a 3.3% dividend yield, up 3.5% from last year. Its annualized dividend of $2.36 has increased 5 times over the last 5 years, with a payout ratio of 52%. INDB is expecting 20.66% earnings growth in 2025, making it a strong dividend play and investment opportunity.

Independent Bank Corp. (INDB), a finance company headquartered in Hanover, has been making waves in the financial sector with its impressive dividend yield and robust earnings growth prospects. With a current dividend yield of 3.3%, up from 2.97% last year, INDB has become an attractive option for income investors. The company's annualized dividend of $2.36 represents a significant 3.5% increase from the previous year, reflecting its commitment to shareholder returns.

Over the past five years, INDB has consistently increased its dividend, with a compound annual growth rate (CAGR) of 5.67%. This steady growth is a testament to the company's financial health and its ability to distribute a portion of its earnings to shareholders. The current payout ratio stands at 52%, indicating that the company is paying out 52% of its trailing 12-month earnings per share (EPS) as dividends.

Looking ahead, INDB's earnings growth prospects are particularly promising. The Zacks Consensus Estimate for 2025 projects earnings per share (EPS) to reach $5.49, representing a year-over-year growth rate of 20.66%. This robust earnings growth is expected to drive further dividend increases, making INDB an appealing investment for those seeking both income and capital appreciation.

Institutional investors have also taken notice of INDB's potential. Vanguard Group Inc. recently increased its stake in the company by 9.5%, bringing its total ownership to approximately 6.37%. Other institutional investors, such as Versant Capital Management Inc., Aquatic Capital Management LLC, and Tower Research Capital LLC, have also bolstered their positions in INDB, highlighting the company's appeal among professional investors.

Despite the recent dividend increase, it's essential to note that dividend payouts can be affected by various factors, including changes in interest rates, economic conditions, and the company's financial performance. However, with its strong earnings growth prospects and attractive dividend yield, INDB appears to be a solid choice for investors seeking both income and growth.

References:
[1] https://www.nasdaq.com/articles/independent-bank-corp-indb-could-be-great-choice-0
[2] https://www.marketbeat.com/instant-alerts/filing-independent-bank-corporation-ibcp-shares-purchased-by-vanguard-group-inc-2025-08-27/