Heritage Financial Raises Quarterly Dividend to $0.25

Heritage Financial Corporation increased its quarterly dividend to $0.25 per share from $0.24, a 4.17% raise. The shares will trade ex-dividend on Aug. 5, 2026.

The higher payment lifts the Olympia, Washington-based bank holding company’s annualized dividend to $1.00 per share. At a share price of $28.19, that represents a forward annual yield of 3.55%.

The increase extends Heritage Financial’s dividend-growth streak to 14 consecutive years. The company previously reduced its payout in 2011.

Heritage Financial is the parent of Heritage Bank, a state-chartered commercial bank serving small and midsize businesses in Washington, Oregon and Idaho. Its shares trade on the Nasdaq Global Select Market under the HFWA symbol, according to the company’s investor-relations profile.

Business context

The company did not attribute the dividend increase to a single factor. The announcement accompanied its second-quarter results, which showed net income of $17.5 million and diluted earnings per share of $0.42. Heritage also reported an improving net interest margin and said its regulatory capital levels remained above the thresholds required to be considered well-capitalized. Heritage’s second-quarter earnings release provides the operating and capital details.

The quarter was Heritage’s first full reporting period following its acquisition of Olympic Bancorp, which closed in January. Management said merger-related expenses weighed on reported results and that it expected additional cost savings after a systems conversion. Chief Executive Bryan McDonald also pointed to improving net interest margin, strong credit-quality measures and a solid loan pipeline, while noting that higher prepayments restrained loan growth.

Heritage’s subsequent quarterly filing with the SEC likewise showed that the integration of Olympic remained an important part of the company’s financial position and operating outlook.

What it means for income investors

The increase adds $0.01 to each quarterly payment, or $0.04 per share on an annualized basis. The 3.55% forward yield reflects the stated $28.19 share price and will change as the stock price moves.

Heritage carries a dividend-safety score of 84 out of 100, equivalent to an A grade. That measure, together with the 14-year growth record, indicates a comparatively strong dividend profile, though neither the score nor past increases guarantee future distributions.