The Dynamic Dividend

Cass Hikes Payout Again, Tacks on Stock Dividend

Cass Information Systems (CASS) announced a 6.25% increase to its quarterly dividend within this morning’s third quarter earnings release. The provider of payment and information processing services also announced a 10% stock dividend, which essentially gives shareholders a 17% raise.

Investors will receive one share of CASS in December for every ten shares held. In addition, the company is raising its quarterly dividend by from $0.16 to $0.17 per share, which will apply to all of the shares held after the 10% stock dividend is completed. Taking into account the additional shares, investors can expect 16.7% more cash on their current investment moving forward.

Shares of CASS are currently trading at $36.36, where a quarterly dividend of $0.17 per share produces a 1.87% dividend yield. Factoring in the additional shares they will receive come December, buyers at today’s price will soon be sitting on a yield-on-cost of 2.06%.

Cass is currently on pace to improve its dividend output for the tenth consecutive year.