Valley National Ban (VLY) DIvidends Date & History

Key Takeaways

• Valley National Bancorp pays a quarterly dividend of $0.11 per share, translating to an annual dividend of $0.44 and a current yield of approximately 3.0% to 3.7%, depending on the share price.
• The dividend has remained unchanged at $0.11 per quarter since 2018, reflecting a stable but flat payout trajectory with no recent increases.
• With a trailing payout ratio near 39.6%, the dividend is well-covered by earnings, signaling strong sustainability in the near term.
• The company's free cash flow payout ratio of roughly 39.6% offers an additional layer of coverage beyond earnings alone.
• Valley National holds a BBB- investment-grade credit rating from S&P Global Ratings, underscoring financial stability that supports ongoing capital distributions to shareholders.
• The stock may appeal primarily to income-oriented investors seeking a reliable, above-average yield from a regional bank rather than aggressive dividend growth.

Dividend Overview

VLY maintains a straightforward quarterly dividend policy, distributing $0.11 per share to common stockholders every three months. Annualized, the dividend totals $0.44 per share, yielding approximately 3.06% based on recent trading levels. Dividends are typically declared alongside the company's preferred stock distributions and follow a consistent calendar: ex-dividend dates generally fall in mid-March, mid-June, mid-September, and mid-December, with payments arriving at the start of the following month. The most recent ex-dividend date was June 15, 2026, with a payment date of July 1, 2026.

Valley National Bancorp, the holding company for Valley National Bank, is a regional banking institution serving markets primarily in New York, New Jersey, and Florida. The company is best characterized as a moderate-yield regional bank stock rather than a high-yield or dividend-growth standout. Its dividend offers a competitive income stream relative to the broader financial sector average, where many banks yield between 2% and 4%.

Dividend History and Growth

Valley National Bancorp has maintained a consistent quarterly common dividend of $0.11 per share since 2018. Prior to that, the company's dividend history included periods of both increases and reductions — a pattern not uncommon among regional banks navigating shifting interest rate environments and merger-driven balance sheet changes. Notably, the dividend was meaningfully higher in the early 2010s, when quarterly payouts exceeded $0.65 per share, before being gradually reduced.

The company has paid dividends for over four decades, demonstrating a long-term commitment to returning capital to shareholders. However, the absence of dividend increases since 2018 means the five-year dividend growth rate is effectively zero. This flat trajectory places VLY outside the category of dividend growth stocks. Instead, the bank prioritizes maintaining a stable, predictable payout that is comfortably supported by earnings and free cash flow. For investors who value reliability over growth, this consistency can be viewed as a positive attribute.

Dividend Sustainability and Payout Ratio

Dividend sustainability is one of Valley National's stronger attributes. The trailing twelve-month payout ratio, based on earnings, stands at approximately 39.6%. This means the company uses less than 40% of its net income to fund common dividend payments, leaving ample room for reinvestment, loan-loss reserves, and balance sheet management. On a free cash flow basis, the payout ratio is similarly healthy at around 39.6%, indicating that the dividend is not straining the bank's liquidity position.

Looking ahead, analyst estimates suggest the payout ratio could decline further — projections point to approximately 34% based on current-year earnings estimates and roughly 29% based on next year's estimates — implying improving coverage as earnings grow. The company also benefits from a BBB- investment-grade credit rating from S&P Global Ratings on its senior unsecured debt, which reflects a solid financial foundation. Total debt stood at approximately $3 billion as of late 2025, with $1.58 billion in cash and interest-bearing deposits, providing a comfortable liquidity buffer. The debt-to-equity ratio of roughly 0.35 remains well below the regional banking industry average.

Dividend Compared to Industry Peers

Within the regional banking sector, Valley National Bancorp's dividend yield is broadly competitive. Peers such as FULT (Fulton Financial) and UBSI (United Bankshares) offer yields in the 3.9% to 4.3% range, while OZK (Bank OZK) yields around 3.7% to 4.1%. VLY's yield sits near the middle of this peer set. Compared to the broader financial sector average of roughly 1.3% to 2.5%, VLY's payout is notably higher.

Where VLY differs from some peers is in its dividend growth profile. United Bankshares, for instance, has a long-running streak of annual dividend increases spanning multiple decades. Fulton Financial and Bank OZK have also demonstrated more dynamic dividend growth in recent years. Valley National's flat dividend since 2018 places it at a disadvantage for investors who prioritize compounding dividend income over time, though its payout ratio and coverage metrics are comparable to or healthier than many peer institutions.

AI Screener

For investors looking to identify dividend-paying stocks, breakout candidates, or income-focused opportunities across the market, Tickeron's AI Screener offers a powerful solution. This AI-driven stock and ETF discovery tool enables traders and investors to filter thousands of securities based on customizable criteria such as industry classification, market capitalization, technical indicators, price patterns, volatility metrics, and fundamental data. The screener can help users isolate dividend stocks with specific yield thresholds, payout ratios, or growth streaks, as well as trending stocks and breakout candidates — all with greater speed and precision than manual screening. Whether you are building an income portfolio or scanning for tactical trading ideas, the AI Screener provides a structured, data-driven way to navigate the market efficiently.

Is This Stock Attractive for Dividend Investors?

Valley National Bancorp may be most suitable for income-oriented investors who prioritize a reliable, above-average dividend yield over dividend growth. With a quarterly payout that has remained steady for over eight years and a payout ratio below 40%, the dividend offers a reasonable degree of predictability. Conservative investors seeking steady cash flow from a regional bank with an investment-grade credit rating may find the stock worth consideration.

However, dividend growth investors — those seeking annual increases that compound over time — are likely to find VLY less compelling given its multi-year stretch of static payouts. The bank has not raised its common dividend since 2018, and while earnings coverage remains healthy, management has not signaled a shift toward a dividend-growth strategy. Additionally, the company has prioritized stock buyback programs and balance sheet management over dividend increases in recent capital allocation decisions. For long-term investors who value total return and dividend compounding, looking at peers with more dynamic dividend growth records may offer a better fit. As always, individual investment goals, risk tolerance, and portfolio diversification should guide any decision.

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