National Bankshares, Inc. (NKSH) operates as the bank holding company for the National Bank of Blacksburg, which provides a range of retail and commercial banking services to individuals, businesses, non-profits, and local governments in Virginia. This dividend achiever has increased dividends on its common stock for 12 years in a row.
The company’s last dividend increase was in May 2012 when the Board of Directors approved a 16.70% increase to 53 cents/share.I uncovered this hidden dividend star in my weekly review of dividend increases.
Over the past decade this dividend growth stock has delivered an annualized total return of 12.30% to its shareholders.
dividend payment doubling every nine years. The current semi-annual payment is twice the amount of dividends paid 9 years ago. Between 2002 and 2004 the dividend payout ratio increased from 34% to 40%. Since 2005 however, this indicator has been flat around 40%. A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings.
is attractively valued at 11.10 times earnings, yields 3.70% and has an adequately covered dividend. I would consider initiating a position in the stock subject to availability of funds.
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