Alerus Financial to Pay $0.21 Dividend, Yield at 3.7%

Friday, Sep 5, 2025 7:00 am ET1min read

Alerus Financial (NASDAQ:ALRS) is set to pay a dividend of $0.21 per share on October 10th, resulting in a 3.7% dividend yield. With a 10-year dividend history, Alerus Financial's payout ratio of 50% and forecasted EPS growth of 21.3% over the next year, the dividend is sustainable. However, the company's earnings have shrunk at 4.2% per annum in the last five years, and its issuance of new shares could be detrimental to dividend growth.

Alerus Financial Corporation (NASDAQ: ALRS), a leading regional financial institution, has declared a quarterly cash dividend of $0.21 per common share. This dividend, which represents a 3.7% yield, will be paid on October 10, 2025, to shareholders of record as of September 26, 2025 [1].

The dividend announcement comes amidst a robust financial performance by Alerus Financial. The company reported a net income of $20.3 million for the second quarter of 2025, up 13.55% compared to the same period last year. This strong performance is expected to continue, with analysts forecasting an earnings growth of 21.3% for the next fiscal year [2].

Alerus Financial has a history of consistent dividend payouts, with a 10-year track record of increasing dividends. The company's payout ratio stands at 50%, indicating a balance between shareholder returns and reinvestment in the business. However, it is worth noting that the company's earnings have declined by 4.2% per annum over the past five years, which could potentially impact future dividend growth [1].

One potential concern is the recent issuance of new shares, which could dilute earnings per share (EPS) and potentially affect dividend growth. However, Alerus Financial's strong financial position and steady earnings growth suggest that the dividend remains sustainable in the near term [2].

Investors should keep an eye on Alerus Financial's upcoming earnings announcements and dividend declarations to stay updated on the company's financial health and dividend policy.

References:

[1] https://www.stocktitan.net/news/ALRS/
[2] https://www.marketbeat.com/stocks/NASDAQ/ALRS/

Alerus Financial to Pay $0.21 Dividend, Yield at 3.7%

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