FS Bancorp Raises Quarterly Dividend to 28 Cents: A Win for Investors

FS Bancorp, Inc. (NASDAQ: FSBW) has announced a 3.7% increase in its quarterly cash dividend, raising it from $0.27 to $0.28 per share. This increase, effective for the dividend payable on February 20, 2025, to shareholders of record as of February 6, 2025, is a testament to the company's strong financial performance and commitment to returning value to its shareholders.

FS Bancorp's dividend increase is a reflection of its robust earnings growth and solid financial health. The company reported a 19.67% increase in revenue and a 21.93% increase in earnings in 2023. This strong performance has enabled the company to maintain its dividend payout ratio at a manageable level, ensuring that it can continue to distribute a significant portion of its earnings to shareholders while reinvesting in the business.

The dividend increase is also a result of FS Bancorp's consistent dividend growth history. The company has increased its dividend for 48 consecutive quarters, demonstrating its commitment to rewarding shareholders with a growing income stream. This consistency is attractive to income-oriented investors, who value the stability and predictability of a reliable dividend.

FS Bancorp's dividend yield of 2.61% is lower than the average dividend yield of regional banks, which is typically around 3% to 4%. However, the company's dividend growth rate of 11.5% is higher than the average dividend growth rate of regional banks, indicating that the company is focused on increasing its dividend payout over time. This focus on dividend growth, combined with the company's strong financial performance and consistent dividend history, makes FS Bancorp an attractive investment option for income-oriented investors.

In conclusion, FS Bancorp's dividend increase is a win for investors, as it reflects the company's strong financial performance and commitment to returning value to shareholders. The company's consistent dividend growth history and focus on dividend growth make it an attractive investment option for income-oriented investors. As FS Bancorp continues to grow its earnings and dividend, investors can expect to benefit from the company's strong financial performance and commitment to rewarding shareholders with a growing income stream.