Southside Bancshares Decreases Stock Dividend!

“Southside Bancshares (SBSI) quietly Decreased its Annual “Stock Dividend” by 3% .”

Southside Bancshares (SBSI) quietly Decreased its Annual “Stock Dividend” by 3% .

Southside Bancshares has been paying a 5% annual “Stock dividend ” each year since 1997. In a surprise move it has reduced the Stock Dividend to just 2% this year.

From the news release – The Stock Dividend cut was hidden in the regular dividend increase announcement:

TYLER, Texas, May 04, 2017 (GLOBE NEWSWIRE) — The Board of Directors of Southside Bancshares, Inc., (NASDAQ:SBSI), parent company of Southside Bank approved an increase to the regular quarterly cash dividend of $0.03 to $0.28 per common share and declared a regular quarterly cash dividend of $0.28 per common share.  The cash dividend is payable to common stock shareholders of record May 18, 2017 and is scheduled for payment on June 1, 2017.  In a separate motion, the Board of Directors declared a 2.5% common stock dividend payable to common shareholders of record May 30, 2017.  The common stock dividend is scheduled for payment on June 27, 2017.

“The increase in the quarterly cash dividend, combined with the 2.5% common stock dividend represents a 14.5% increase in the cash dividend for our shareholders,” stated Lee R. Gibson, President and Chief Executive Officer of Southside Bancshares, Inc.  “We are pleased that our success has allowed us to increase the portion we are able to return to our shareholders.”

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $5.66 billion inassets that owns 100% of Southside Bank.  Southside Bank currently has 60 banking centers in Texas and operates a network of over 70 ATMs.

This move is very disappointing to me and at this time I am still evaluating whether to continue holding the stock or to sell it. Even more confusing is the fact that the Press release states that a 2.5% Stock Dividend was authorized ( which would indicate a 50% reduction) but their website shows only a 2% Stock Dividend.

I feel a lot of emotions from this move by Southside Bancshares. I feel Lied to, Deceived, Misled and I am angry , embarrassed and feel like a sucker. Now of course all those emotions are probably and exaggeration of what I should be feeling but I have to admit in my gut feelings i do feel like the company intentionally was hiding the fact that they lowered the Stock Dividend and tried to cover it up with the announcement of a increase in the regular dividend.

Why am I making a big deal about this? I’m not sure but I have long had a strict rule of Not Investing in Banks. I violated that rule and now the bank has violated me and I no longer trust them. Banks are in my opinion, nothing more than a legal system of robbery. They are a necessary evil for most but can be somewhat avoided by using Credit Unions in their place but I personally do my best to avoid them. Their fees are just insane and they charge for things that most people would balk at. I even had a bank that I used for a business account once charge $2.00 if you called and asked them a question. ( Yes it is true) I had the supervisor of that bank once that complained out one of my business practices ( I don’t recall what her complaint was ) but when I countered with at least I don’t charge my customers $2.00 for phone calls. She tried to deny this was true when the tellers chimed in and said – “actually what he is saying is true.” She never complained to me again.

So go ahead Southside – reduce your share dividend, raise your customer fees because in the end, I am sure some of us will enjoy the last laugh!

Yes it is True – Southside Bancshares has done the Unthinkable – It has Decreased its Stock Dividend by 3% !

 

Your thoughts and comments are always welcome !

 

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Double Fun – Double Pleasure

I have owned this stock less than a year now but I am confident I will hold it in my portfolio for years to come.

Southside Bancshare Inc. (SBSI) has it all – Relatively high dividends ( for a Bank) , Pays Special Dividend and to top it off pays a “Share Dividend” every year. I am not one to invest in banks but with this one I made an exception for myself.

Southside Bancshares, Inc. is a holding company for Southside Bank, a  regional bank established in 1960 and is located in Tyler, Texas and serves central, eastern and northern Texas with it’s current 60 locations and 70 ATMs. It is a full service bank with more than $5.6 Billion in assets.

Southside Bancshares Tyler Trust Building
Southside Bancshares Tyler Trust Building

It has a current quarterly dividend of 0.25 cents per share ( $1.00 per share annually) with a current dividend yield of 2.81% with a payout ratio of approximately 54%. (May 2017)

In addition to its regular dividend it also pays a “Special Dividend” historically in December  of each year with the last two being  .0500 per share (December 2016) and .0762 per share (December 2015). A special dividend is one that is paid in addition to the regular dividend a stock pays.

And as an added bonus the SBSI pays an annual “Share Dividend” usually in May or June of each year with this years Share Dividend expected to be announced any day now. It has paid this “Share Dividend ” each year since 1997 and has paid a regular dividend since June 1997. The first year the dividend was paid on a semi-annual basis.

For more detailed information you can visit its Investor Relations Page.

 

I have owned this stock less than a year now but I am confident I will hold it in my portfolio for years to come. In my opinion it will continue to be a real winner for me. Maybe it just might be the stock you have been looking for!

 

Your comments are always welcome!