CHARLESTON, W. Va.–(BUSINESS WIRE)–City Holding Company, “the Company” (NASDAQ: CHCO), a $5.5 billion bank holding company headquartered in Charleston, today declared a dividend of 58 cents per common share for shareholders of record as of January 15, 2021. The dividend is payable on January 29, 2021. The dividend represents a 1.75% increase from the 57 cents per share cash dividend paid in the third quarter of 2020.
“I am very pleased with the Board’s decision to once again increase the quarterly cash dividend,” stated Charles (Skip) Hageboeck, President and CEO. “This increase reaffirms the Company’s commitment of returning value to its shareholders. The decision to increase the dividend to $2.32 on an annualized basis is based on the Company’s current strong capital and liquidity position, our financial performance during 2020, and our confidence in the Company’s ability to sustain this performance.”
City is covered by analysts at Boenning & Scattergood, Inc., D.A. Davidson & Co., Hovde Group, LLC, Keefe, Bruyette & Woods Inc., Piper Sandler, and Stephens Inc. The mean analyst estimate for 2021 earnings is $4.02 per share. With this increase in the dividend rate, City’s dividend payout ratio will approximate 55% of earnings estimates and affirms our commitment to return our profits to our shareholders. Over the last five years, City has returned approximately 79% of its earnings to shareholders either through dividends, share repurchases or cash acquisitions.
City Holding Company is the parent company of City National Bank of West Virginia. City National Bank operates 94 branches across West Virginia, Kentucky, Virginia, and Ohio. The Company’s stock is traded on the NASDAQ Global Select Market under the quotation symbol “CHCO”.
Forward-Looking Information
This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, especially in the communities and markets in which we conduct our business; (2) the uncertainties on the Company’s business, results of operations…
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