Today Southside Bancshares (SBSI) announced it has increased its quarterly dividend 16.7%. Actually it made two announcements, the first is that a 21 for 20 stock split is coming. This will increase shares by 5% but lower the current quarterly dividend from $.18 to $.1714. However in a second announcement the quarterly dividend was raised to $.20 per quarter representing 16.7% dividend growth.
Right now my 60 shares pay me $43.20/year which will turn into 63 shares paying me $50.40/year.
SBSI is small bank located in Texas. It has an awesome dividend policy including regular dividend increases (17 straight years), stock dividends (stock splits) and special dividends to boot. Annually SBSI rewards shareholders with 5% stock split, but keeps the quarterly dividend the same. Its really just a phantom dividend increase of exactly 5%. Using today (and history) as evidence, SBSI is a company which rewards shareholders handsomely. I will add to my position on dips.