OFG Bancorp (NYSE:OFG) Increases Dividend to $0.40 Per Share

OFG Bancorp (NYSE:OFG) declared a quarterly dividend on Monday, November 2nd. Investors of record on Thursday, December 31st will be paid a dividend of $0.40 per share by the bank on Friday, January 15th. This represents a $1.60 annualized dividend and a yield of 3.1%. The ex-dividend date is Thursday, December 31st. This is a 14.3% increase from OFG Bancorp’s previous quarterly dividend of $0.35.

OFG Bancorp has raised its dividend by an average of 0.3% per year over the last three years and has raised its dividend every year for the last 5 years. OFG Bancorp has a payout ratio of 31.5% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect OFG Bancorp to earn $5.32 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 26.3%.

OFG Bancorp Price Performance

NYSE:OFG opened at $50.96 on Tuesday. OFG Bancorp has a 12-month low of $35.71 and a 12-month high of $54.47. The firm has a market cap of $2.15 billion, a price-to-earnings ratio of 9.71 and a beta of 0.73. The company’s 50-day moving average is $51.69 and its two-hundred day moving average is $46.78. The company has a current ratio of 0.86, a quick ratio of 0.88 and a debt-to-equity ratio of 0.30.

OFG Bancorp (NYSE:OFG) last issued its quarterly earnings results on Wednesday, October 21st. The bank reported $1.33 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.10. The business had revenue of $186.21 million during the quarter, compared to the consensus estimate of $187.11 million. OFG Bancorp had a net margin of 24.64% and a return on equity of 16.38%. Research analysts expect that OFG Bancorp will post 5.32 EPS for the current year.

Insider Activity

In related news, CFO Maritza Arizmendi sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $53.35, for a total value of $533,500.00. Following the sale, the chief financial officer directly owned 56,684 shares of the company’s stock, valued at approximately $3,024,091.40. This trade represents a 15.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Néstor de Jesús sold 4,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $53.00, for a total transaction of $212,000.00. Following the completion of the sale, the director directly owned 20,040 shares in the company, valued at $1,062,120. This represents a 16.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.23% of the company’s stock.

Hedge Funds Weigh In On OFG Bancorp

A number of hedge funds have recently made changes to their positions in OFG. BlackRock Inc. purchased a new position in shares of OFG Bancorp in the 2nd quarter worth $302,289,000. Dimensional Fund Advisors LP grew its position in OFG Bancorp by 1.1% during the first quarter. Dimensional Fund Advisors LP now owns 2,565,784 shares of the bank’s stock valued at $103,811,000 after acquiring an additional 27,774 shares during the period. First Trust Advisors LP grew its position in OFG Bancorp by 13.8% during the first quarter. First Trust Advisors LP now owns 2,321,924 shares of the bank’s stock valued at $93,945,000 after acquiring an additional 281,593 shares during the period. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in OFG Bancorp during the second quarter valued at about $24,993,000. Finally, Jupiter Topco LLC acquired a new stake in OFG Bancorp during the second quarter worth about $21,094,000. Institutional investors and hedge funds own 92.73% of the company’s stock.

OFG Bancorp Company Profile

OFG Bancorp is a financial holding company headquartered in San Juan, Puerto Rico. Through its principal subsidiary, Oriental Bank, the company provides banking and financial services to individuals, businesses and institutions in Puerto Rico and the U.S. Virgin Islands.

Oriental Bank offers deposit accounts, consumer and commercial loans, residential mortgage lending, auto financing, credit cards and other retail banking products. The company also provides wealth management, trust, investment and insurance-related services through its affiliated businesses.

Founded in 1964, OFG Bancorp has expanded its presence in Puerto Rico through organic growth and acquisitions, including the purchase of Scotiabank’s Puerto Rico operations in 2019.