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Merchants (MBIN) Approves Stock Split & Renewal of Buyback Plan

Merchants Bancorp’s MBIN board of directors has approved to renew and increase the company’s share repurchase program of up to $75 million. The share buyback plan will expire on Dec 31, 2023.

Merchants Bancorp can acquire shares from time to time in the open market or otherwise at such prices, quantities, and terms as management deems appropriate and in the best interest of its stockholders.

The company is not obligated to repurchase the shares and the plan may be modified, suspended, or discontinued at any time at the discretion of the board.

Simultaneously, the company announced a three-for-two stock split. MBIN’s shareholders of record as of Jan 3, 2022, are eligible to receive one additional share for every two shares they own of the company’s common stock.

The additional shares will be distributed beginning Jan 17, 2022, and cash will be given in lieu of fractional shares based on Merchants Bancorp’s closing stock price as of Jan 3, 2022.

Merchants Bancorp also announced a quarterly cash dividend of 9 cents per share. The dividend will be paid out on Jan 3, 2022, to shareholders of record as of Dec 15, 2021.

Considering last day’s closing price of $46.09, the company’s dividend yield currently stands at 0.78%.

Supported by a solid balance sheet position, Merchants Bancorp’s capital deployment activities look sustainable.

Since 2018, it has been increasing quarterly dividends almost every year. The last hike was announced this February. The company increased the quarterly dividend by 12.5%, from 8 cents to 9 cents per share. The dividend was paid out on Apr 1 to shareholders of record as of Mar 15.

Merchants Bancorp’s robust business model highlights its commitment to enhancing shareholders’ value with its strong cash generation capabilities.

Over the past year, shares of the company have gained 69.9% compared with 60.9% growth recorded by the industry.


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Currently, Merchants Bancorp sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dividend Hikes by Other Finance Companies

Recently, M&T Bank Corporation MTB announced a dividend per share of $1.20, representing a hike of 9.1% from the prior payout. The dividend will be paid out on Dec 31 to shareholders of record as of Nov 30.

Since the 2008 financial crisis, when MTB paid out a dividend of 70 cents per share, M&T Bank has come a long way in displaying its capital strength. Prior to this hike, the bank raised its dividend by 10% in November 2019 to $1.10 per share.

Last month, Bank OZK OZK declared a quarterly cash dividend of 29 cents per share, reflecting a rise of 1.8% from the prior payout. The dividend was paid out on Oct 22 to shareholders of record as of Oct 15.

This was the 45th consecutive quarter of a dividend hike by Bank OZK. Prior to this, Bank OZK hiked its dividend by 1.8% to 28.5 cents per share in July. We believe that such disbursements highlight OZK’s operational strength and commitment toward enhancing shareholder wealth.

In September, JPMorgan JPM announced a dividend of $1 per share, representing a hike of 11.1% from the prior payout. The dividend was paid out on Oct 31 to shareholders of record as of Oct 6.

In addition to paying regular dividends, JPMorgan has an efficient share buyback plan in place. For 2021, JPM authorized to repurchase shares worth up to $30 billion.

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