A regional bank built around cross-border commerce has grown its dividend at a 19% compound annual rate over the past three years, a pace that ranks in the top 20% of all dividend-paying stocks we track. Its business spans commercial lending, real estate financing, trade finance, deposits and wealth management, with a specific focus on helping businesses and individuals move money and manage risk between the U.S. and Asia.
Record loan and deposit balances have pushed net interest income to a new high this year, and fee-based revenue from wealth management is growing even faster than the loan book itself. Funding costs remain a factor to watch, particularly as a large batch of higher-cost deposits comes up for renewal in the months ahead. Credit quality has softened slightly too, though management has held firm on its full-year guidance for loan losses.
The Dividend Growth Stocks Portfolio has added this name today, drawn by the combination of fast dividend growth, a low payout ratio and capital levels that sit well above the typical bank in its group. For investors who want income that compounds rather than income that simply sits still, this profile fits the portfolio’s core mandate.
