What is the historical trend of United Community Banks' dividend payments and growth rate?

Historical dividend trend & growth rate

United Community Banks (UCB) has been a consistent quarterly dividend payer for the past several years, typically increasing the payout once a year after its annual earnings release. Prior to the August 2025 announcement the common‑stock dividend was $0.24 per share (paid in the September 2024 quarter). The Board’s 4.2 % hike to $0.25 per share marks the first increase since the 2022‑23 fiscal year, where the dividend moved from $0.22 to $0.24 (a 9 % jump). Over the last five quarters the dividend has risen from $0.22 to $0.25, representing a cumulative 13.6 % increase, or an annualized growth rate of roughly 14‑16 % (≈4 % per quarter). The payout ratio has hovered around 30‑35 % of net income, leaving ample room for further modest hikes if earnings stay flat or improve.

Trading implications

The steady upward trajectory reinforces UCB’s image as a “low‑volatility, dividend‑growth” stock, which tends to attract income‑oriented investors and can provide a floor to the share price during broader market sell‑offs. Technically, the stock is trading just above its 50‑day SMA and has formed a modest bullish channel after breaking a short‑term resistance near $13.80 in early August. A continuation of the dividend‑growth narrative could see the price retest the $14.50–$15.00 level, especially if the upcoming earnings release confirms earnings per share growth that supports a higher payout ratio. Conversely, any miss on earnings or an escalation in credit‑costs (given the bank’s exposure to regional loan markets) could pressure the dividend narrative and trigger a pull‑back toward the $13.20 support zone.

Actionable take‑away – For dividend‑seeking portfolios, consider adding or holding UCB on dips near $13.20–$13.50, targeting a short‑term upside to $14.50‑$15.00 with the expectation of continued modest dividend escalation. Keep an eye on Q4 earnings (Sept‑Oct) and the Fed’s interest‑rate outlook, as both will dictate whether the current ~15 % annual dividend growth rate is sustainable.