4 Bank Stocks With Dividend Hikes This Week to Keep on Your Radar

After almost two months of impressive performance since mid-June, equity markets have been witnessing volatility in August amid tariff policy implementation and inflationary pressure. With volatility returning to the U.S. stock markets, investors must remain cautious and shouldn’t take hasty investment decisions.

Amid such a challenging operating backdrop, investors must bet on stocks with a track record of steady and incremental dividend payouts to safeguard their portfolio. This is because dividend-paying stocks have a long history of profitability and a robust business model, which helps them endure market volatility.

Hence, this investment strategy will help investors generate steady returns. Today, we are discussing four small and mid-cap banks – Bank7 Corp. BSVN, Unity Bancorp, Inc. UNTY, Stock Yards Bancorp, Inc. SYBT and BayCom Corp BCML – that recently announced a dividend hike.

The abovementioned banks have been increasing quarterly dividends regularly, thus enhancing shareholder value. Also, over the past year, these stocks have rallied more than 15%.

Price Performance

Image Source: Zacks Investment Research

4 Bank Stocks to Watch

Bank7 Corp. is a bank holding company and operates through its principal subsidiary, Bank7, which is primarily engaged in providing a broad range of banking and financial services to retail and corporate clients located in Oklahoma, Texas and Kansas. As of June 30, 2025, it had $1.83 billion in assets.

On Aug. 21, BSVN announced a quarterly cash dividend of 27 cents per share, marking an increase of 12.5% from the prior payout. The dividend will be paid out on Oct. 7, 2025, to common stock shareholders of record as of Sept. 19.

The company has increased its dividend six times in the past five years, with an annualized dividend growth rate of 24%. Bank7 Corp. has a forward dividend yield of 2.33% and a dividend payout ratio of 21%.
 
The Zacks Consensus Estimate for BSVN’s 2025 sales indicates a year-over-year decline of 2.4%, while that for earnings suggests a 13.4% decrease. This Zacks Rank #2 (Buy) company has a market cap of $437.2 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Unity Bancorp is the bank holding company incorporated in New Jersey, offering a full range of commercial and retail banking services through online banking platforms and a robust branch network across New Jersey and Pennsylvania. As of June 30, 2025, UNTY had $2.93 billion in assets.

On Aug. 21, UNTY announced a quarterly cash dividend of 15 cents per share, representing a rise of 7.1% from the prior payout. The dividend will be paid out on Sept. 19, 2025, to shareholders of record as of Sept. 5.

The company has increased its dividend six times in the past five years, with an annualized dividend growth rate of 13%. Unity Bancorp has a forward dividend yield of 1.24% and a dividend payout ratio of 12%.
 
The Zacks Consensus Estimate for 2025 sales indicates a rise of 16.5% year over year, while earnings are expected to grow 20.9%. This Zacks Rank #2 stock has a market cap of $487.4 million.

Stock Yards Bancorp, headquartered in Louisville, KY, offers various financial services to individuals, corporations, and others in Louisville, Kentucky, Indiana and Ohio.

On Aug. 20, Stock Yards Bancorp announced a dividend of 32 cents per share, representing a hike of 3.2% from the prior payout. The dividend will be paid out on Oct. 1 to stockholders on record as of Sept. 15.

The company has increased its dividend five times in the past five years, with an annualized dividend growth rate of 3.4%. Stock Yards Bancorp has a forward dividend yield of 1.66% and a dividend payout ratio of 29%.
 
The Zacks Consensus Estimate for 2025 sales suggests an increase of 11.1% year over year, while earnings are expected to jump 17.2%. This Zacks Rank #2 stock has a market cap of $2.27 billion.

BayCom, headquartered in Walnut Creek, CA, operates through its wholly-owned subsidiary, United Business Bank, offering a wide range of financial services primarily to local small and mid-sized businesses, service professionals and individuals. As of June 30, 2025, BCML had $2.62 billion of assets and 34 full-service banking branches across California, Nevada, Washington, New Mexico and Colorado.

On Aug. 21, BayCom announced a quarterly cash dividend of 25 cents per share on its common stock, representing an increase of 25% from the prior payout. The dividend will be paid out Oct. 9 to shareholders of record as of Sept. 11, 2025.

The company has increased its dividend four times in the past five years, with an annualized dividend growth rate of 48.33%. BCML has a forward dividend yield of 3.53%. Further, it has a dividend payout ratio of 37%.
 
The Zacks Consensus Estimate for BCML’s 2025 sales suggests year-over-year growth of 3.6%, while that for earnings indicates a 5.2% increase. This Zacks Rank #3 (Hold) company has a market cap of $310.29 million.

One Big Gain, Every Trading Day

To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.

Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.

Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research