Dividend Growth Stock Overview: Prosperity Bancshares

Prosperity Bancshares has over 240 bank branches in Texas, including
60 in Houston.
Photo: Freeimages.com/hectorjr7

About Prosperity Bancshares

Prosperity Bancshares is a bank holding company that operates over 240 full service banking locations under the name Prosperity Bank. Most of the bank locations are in Texas, with another 14 in Tulsa and Central Oklahoma. The company offers a wide variety of loans and banking products, and has more than $17 billion in deposits. Prosperity Bancshares has more than 3,000 employees and is headquartered in Houston, Texas.

Prosperity is an active real estate lender – about 30% of the loan portfolio is in commercial real estate and another 25% is in single and multi-family residential properties. The company also offers auto loans, debit and credit cards, loans for business expansion and land development, retail brokerage services, and trust and wealth management services. The company has about $1.5 billion in assets under wealth and trust management.

The company trades under the ticker symbol PB.

Prosperity Bancshares’ Dividend and Stock Split History

Prosperity Bancshares has paid dividends since 1993 and grown them since 1999.  The company announces annual dividend increases in October, with the stock going ex-dividend in December.

Prosperity Bancshares has compounded its payout at an average rate of 11.5% over the last 5 and 10 years.

The company has split its stock twice since its formation in 1983. The company executed a 4-for-1 stock split in September 1998 and a 2-for-1 stock split in June 2002.

Prosperity Bancshares’ Direct Purchase and Dividend Reinvestment Plans

Prosperity Bancshares has both direct purchase and dividend reinvestment plans. However, to participate in either plan, you must be a current shareholder. That means that you must own shares in your own name and not that of your brokerage (i.e., “in street name”). If you do own shares in a brokerage account, you’ll have to have them issued to you and then deposited into the plan to begin participating. Once you join the plan, the minimum for additional investments is $100. The dividend reinvestment plan allows for partial reinvestment of dividends.

The plans’ fee structures are very favorable to investors. There are no fees associated with purchases of stock through the plans. When you sell your shares, you’ll pay a commission of 12 cents per share and when you withdraw from the plan or request stock certificates, you’ll be assessed a fee of $25.

Helpful Links

Prosperity Bancshares’ Investor Relations Website

Current quote and financial summary for Prosperity Bancshares (finviz.com)

Information on the direct purchase and dividend reinvestment plans for Prosperity Bancshares

 

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