Oak Valley Bancorp (CA) (OVLY) DIvidends Date & History

Key Takeaways

• Oak Valley Bancorp (OVLY) pays a semi-annual dividend of $0.375 per share, with an annualized dividend of approximately $0.75 per share and a trailing dividend yield of roughly 2.03%.
• The company has increased its dividend for 11 consecutive years, with a five-year annualized dividend growth rate of approximately 16.47%, signaling strong commitment to returning capital to shareholders.
• OVLY's payout ratio stands at approximately 21% to 26% of earnings and around 23% of free cash flow, leaving ample room for future dividend increases and downside protection.
• As a small California-based community bank with a market capitalization near $274 million, OVLY offers a rare combination of steady dividend growth and conservative capital management.
• The bank maintains exceptional asset quality with near-zero non-performing assets and a strong capital position, reinforcing dividend sustainability.

Dividend Overview

Oak Valley Bancorp (OVLY), the holding company for Oak Valley Community Bank, operates 19 branches across California's Central Valley and Eastern Sierra regions. The company pays a semi-annual cash dividend to shareholders, with two distributions per year — typically declared in January and July and paid in February and August. As of mid-2026, the most recent dividend was $0.375 per share, bringing the annualized dividend to approximately $0.75 per share.

Based on recent trading prices, OVLY's trailing twelve-month (TTM) dividend yield hovers around 2.03%. While this places the bank in the modest-yield category rather than high-yield territory, Oak Valley Bancorp's dividend profile is defined by consistency and growth rather than a high current payout. The company is best classified as a dividend growth stock within the regional banking sector, appealing to investors who prioritize steadily rising income over headline-grabbing yields.

Dividend History and Growth

Oak Valley Bancorp has established a notable track record of consistent dividend payments, having raised its dividend every year for 11 consecutive years. This streak, while still modest in absolute terms, is impressive for a small community bank with a market capitalization under $300 million. The company's dividend growth has accelerated meaningfully in recent years: after years of incremental $0.005 to $0.01 increases, OVLY delivered a 40.63% dividend increase in 2024, followed by a 33.33% increase in 2025 and a 25% increase in early 2026.

Over the past five years, the annualized dividend growth rate has averaged approximately 16.47%, far outpacing inflation and the broader regional banking industry. The semi-annual dividend has risen from $0.11 per payment in mid-2015 to $0.375 per payment in 2026 — a more than threefold increase over roughly a decade. This growth reflects the bank's expanding earnings base and management's willingness to share profits directly with shareholders through a steadily rising dividend.

Dividend Sustainability and Payout Ratio

One of the most compelling features of OVLY's dividend is its conservative payout structure. The company currently maintains a dividend payout ratio between approximately 21% and 26% of trailing twelve-month earnings, based on earnings per share (EPS) of roughly $2.86 to $2.88. The free cash flow payout ratio is similarly low at approximately 23%, indicating that the dividend is well-covered by internally generated cash flows and does not rely on debt or external financing.

From a balance sheet perspective, Oak Valley Bancorp is strongly capitalized. As of recent filings, the bank reported total capital ratios well above regulatory minimums — 15.7% Total Capital and 14.8% Tier 1 Capital — with approximately $2.02 billion in total assets. Credit quality is exceptional, with non-performing assets representing just 0.23% of total assets and the allowance for credit losses covering non-performing loans by more than 282%. This pristine loan book, combined with a conservative payout ratio and strong capital buffers, suggests the dividend is highly sustainable and well-positioned for continued growth.

Dividend Compared to Industry Peers

Within the regional and community banking space, OVLY's dividend yield of approximately 2.03% sits broadly in line with or slightly above the average for similarly sized U.S. regional banks. By comparison, larger California-based peers such as CVB Financial Corp. (CVBF) and BayCom Corp (BCML) offer yields in a comparable range, though OVLY's dividend growth rate in recent years has been notably more aggressive.

What sets OVLY apart from many peer institutions is the combination of an 11-year dividend growth streak paired with a payout ratio below 30%. Many community banks either pay a higher yield with less room for growth, or prioritize share buybacks over dividend increases. OVLY's approach — steady, above-average dividend growth funded by expanding earnings — positions it as one of the more shareholder-friendly small-cap banks in its peer group. However, investors should note that with a market capitalization of approximately $274 million, OVLY's stock is thinly traded compared to larger regional bank peers, which may affect liquidity.

AI Screener

For investors seeking to identify dividend-paying stocks like Oak Valley Bancorp alongside other income-generating opportunities, Tickeron's AI Screener offers a powerful solution. This AI-driven stock and ETF discovery platform enables traders and investors to filter thousands of securities based on technical patterns, fundamental metrics, dividend characteristics, market capitalization, industry classification, and AI-generated trading signals. Users can customize screening criteria to target specific investment themes — whether searching for consistent dividend growers, high-yield income stocks, breakout candidates, or trending sectors. By automating what would otherwise be hours of manual research, the AI Screener helps market participants uncover opportunities aligned with their strategy more efficiently and systematically.

Is This Stock Attractive for Dividend Investors?

Oak Valley Bancorp's dividend profile is most likely to appeal to long-term, dividend growth-oriented investors who value consistency and capital preservation over maximizing current income. With a yield around 2% and a double-digit annualized dividend growth rate, OVLY fits the mold of a "growth-and-income" holding — particularly suited for investors building a diversified portfolio of small-cap dividend growers.

Income-focused investors who require a high current yield may find OVLY's payout too modest, and those seeking quarterly or monthly income streams may be put off by the semi-annual payment schedule. However, for patient investors comfortable with a smaller, less liquid stock, OVLY offers a compelling story: a conservatively managed community bank with pristine asset quality, a payout ratio under 30%, and an 11-year record of consistent dividend increases. The bank's strong capital position and disciplined lending culture provide a solid foundation for continued dividend growth, though investors should remain mindful of risks including geographic concentration in California, exposure to commercial real estate lending, and the competitive pressures facing smaller community banks.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations