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Bank of Hawaii Corporation has announced an ex-dividend date of November 29th, which is crucial for investors who wish to receive the next dividend payment. The payment, scheduled for December 14th, will be $0.70 per share. This distribution is part of the bank’s annual dividend of $2.80 per share, currently yielding 5.0% based on the recent share price of $55.6.
The financial institution maintains a payout ratio of 57%, reflecting its strategy to balance rewarding shareholders and retaining earnings for future expansion. Over the past five years, Bank of Hawaii has seen a consistent rise in earnings per share at an annual rate of 2.3%. Furthermore, over the last decade, it has regularly increased its dividend payouts at an average annual rate of 4.5%.
While the bank’s steady performance and reliable dividend growth may be appealing, investors are advised to assess all potential risks in conjunction with the attractive yield figures before proceeding with their investment choices.
InvestingPro Insights
Bank of Hawaii Corporation’s commitment to shareholder returns is evident, with a noteworthy track record of raising its dividend for 7 consecutive years and maintaining dividend payments for an impressive 52 years. This consistency is reflected in the current yield of 5.0%, based on the recent share price. Investors interested in the stability of their income streams will find these aspects particularly reassuring.
From an analytical perspective, the bank’s stock has experienced a strong return over the last month, with a 15.52% increase. This surge, alongside a larger price uptick over the last six months of 44.69%, signals a potentially positive market sentiment towards the company. However, it’s important to consider the broader financial landscape as InvestingPro Data shows a slight decline in revenue over the last twelve months by 1.57%.
In terms of valuation, the bank’s P/E Ratio stands at 11.22, with an adjusted P/E Ratio for the last twelve months as of Q3 2023 at 11.46, indicating that the stock may be reasonably valued in the current market. The InvestingPro Fair Value estimate of $69.53 suggests potential upside from the previous close of $55.31.
For those seeking deeper insights, InvestingPro offers additional tips that can help investors make informed decisions. For instance, while the company is expected to be profitable this year, there is a declining trend in earnings per share that should be monitored. Moreover, the platform lists 8 more InvestingPro Tips, which could provide a nuanced understanding of the company’s financial health and future prospects.
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