The key word in community banks is “community.” A strong operating area is essential for these banks to survive, and, luckily, for the latest Best Dividend Growth Stocks Model pick, its operating area is one of the best, helping to drive a strong 10+ year dividend-growth history, including its latest 7% increase. Investors can grab the opportunity before the stock goes ex-dividend on Thursday, August 11, with an increased regular payout of $0.30/share.
Our pick’s main stomping grounds are in Virginia and in portions of Maryland, putting it right within the Washington D.C. metro area. Given the importance and continued growth throughout D.C., this has continued to send a plethora of deposits into its coffers and created plenty of loan growth. Even better has been the rise in interest rates, which has continued to boost our pick’s margins and bottom line.
With high insider ownership, strong cash flows and a history of rewarding shareholders via buybacks and dividend growth, our new regional pick is a top choice for investors looking to grow their income.
In order to make room for our new community bank pick, we’ve been forced to remove a medical device producer from the list.
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
