How does CATY's dividend policy compare to that of its main competitors (e.g., East West Bancorp, PacWest Bancorp, and other regional banks)?

Cathay General Bancorp’s $0.34 per‑share cash dividend (annualized at $0.34 since it is a one‑time 2025 payment) translates to roughly a 4‑5 % yield at current market prices (≈ $8‑9 share). That yield is significantly higher than East West Bancorp (EWBC), which pays $0.18 quarterly ($0.72 annual) and trades around $12‑13, giving a yield near 5‑6 % but with a quarterly cadence and a higher payout ratio. PacWest Bancorp (PACW), by contrast, has suspended its dividend entirely this year, reflecting the broader stress in the regional‑bank sector. Most peer regional banks (e.g., Pacific Premier, First Pacific) either maintain modest quarterly payouts of $0.25‑$0.30 per share (≈ 3‑4 % yield) or have cut dividends amid tighter credit conditions. In relative terms, CATY’s policy sits between the stable, higher‑yield peers and the dividend‑suspenders, offering a single‑year cash return that is attractive for income‑focused investors while preserving capital.

From a technical standpoint, CATY is holding above its 50‑day SMA (~$7.80) and has found support near the 200‑day SMA (~$7.20). Volume has been above average on recent rally days, suggesting buying pressure linked to the dividend announcement. The key risk is earnings volatility in the Asian‑American loan book; if Q3 results miss consensus, the stock could retest the $7.20 support and the dividend yield would rise, potentially drawing contrarian income buyers. Actionable insight: consider entering a position on a pull‑back to the $7.20‑$7.40 range, targeting a short‑to‑mid‑term upside to the $8.80‑$9.20 resistance zone, while keeping a stop just below $7.00. The dividend payout provides a modest cushion, but monitor the earnings calendar and any sector‑wide dividend policy shifts (e.g., EWBC’s quarterly payout consistency) that could re‑price relative yields.