SouthState Raises Quarterly Dividend 10.0% to $0.66

SouthState Bank Corporation raised its quarterly dividend 10.0% to $0.66 per share from $0.60. Shares traded ex-dividend on August 7, 2026. The new rate represents an annual dividend of $2.64 per share.

Why the dividend changed

SouthState paired the increase with its second-quarter results and described the payment as an ordinary quarterly cash dividend. The company did not identify a single trigger for the decision, but the accompanying results showed higher reported earnings, balance-sheet growth and regulatory capital that remained above required levels. That combination provided the financial context for a larger distribution. SouthState’s second-quarter earnings release contains the declaration and operating results.

Chief Executive Officer John Corbett said management continued to advance its priorities of “balance sheet growth, opportunistic hiring, active share repurchases and building our artificial intelligence capabilities.” The statement places the dividend within a broader capital-allocation program that also includes repurchases and internal investment. SouthState repurchased 1 million shares during the quarter, according to its earnings presentation.

Second-quarter net income was $230 million, with diluted earnings per share of $2.35. Net interest income rose to $576 million, while the net interest margin held at 3.78%. Loans increased by $1.4 billion from the preceding quarter, deposits rose by $474 million and deposit costs were unchanged at 1.76%. The common-equity Tier 1 ratio was 11.1%, providing a capital backdrop for both the dividend increase and repurchases. The company’s quarterly release also reported lower nonaccrual loans and an improved efficiency ratio.

The decision followed SouthState’s acquisition of Independent Bank Group, which closed in 2025 and expanded the bank into Texas and Colorado. The company subsequently completed the acquired bank’s systems conversion and shifted its emphasis toward organic growth, recruiting and technology investment. The increase was not presented as a split adjustment, special dividend or merger-related distribution. SouthState’s shareholder letter describes the integration and the strategy following the transaction.

Dividend track record

The latest increase continues a pattern of annual growth rather than irregular special payments. SouthState paid $0.54 per share for the February and May 2025 ex-dividend dates, followed by $0.60 for the August and November 2025 dates and the February and May 2026 dates. The August 7, 2026 ex-dividend amount moved to $0.66.

Full-year payments rose from $1.88 per share in 2020 to $1.92 in 2021, $1.98 in 2022, $2.04 in 2023, $2.12 in 2024 and $2.28 in 2025. The annual increases accelerated from 2.1% in 2021 to 7.6% in 2025, though the progression was not uniform. The five-year annualized dividend growth rate is 3.9%, making the latest 10.0% increase notably larger than the longer-term pace.

SouthState has now recorded 14 consecutive years of dividend growth. The recent payment sequence also shows that increases have generally been introduced during the year and then maintained across subsequent quarters, rather than changing from payment to payment.

Is the dividend covered?

The dividend consumes 25% of earnings. That payout ratio indicates a relatively limited claim on current profit and leaves earnings capacity for loan growth, capital requirements, repurchases and operating investment.

SmarterDividends rates the dividend A with a safety score of 99, meaning very safe (score 80-100). The grade reflects the low earnings payout and the established growth record. It does not eliminate the banking risks that can affect future distributions, including credit losses, funding costs, interest-rate movements and regulatory capital requirements.

The quarterly results support that assessment without making the dividend independent of operating performance. SouthState reported improving asset quality, net charge-offs equal to 0.06% of average loans and capital ratios that management characterized as strong. Those measures are relevant because deterioration in credit or capital would compete with shareholder distributions for resources. SouthState’s Form 10-Q provides the underlying balance-sheet and risk disclosures.

Yield and valuation

At a share price of $102.45, SouthState’s forward dividend yield is 2.60%. That is below the Financial Services sector median forward yield of 5.70%, so the stock provides less current dividend income than the sector benchmark despite the larger quarterly payment.

SmarterDividends estimates fair value at $194.11 and classifies the shares as undervalued, with 88% upside to that estimate. The fair-value figure is a model-based valuation reference, separate from the dividend safety assessment and not a forecast of market performance. The shares have returned 16.7% over one year.

What to watch

The next quarterly report will show whether the operating conditions accompanying the increase persist. The central measures are loan and deposit growth, the 3.78% net interest margin, the 1.76% deposit cost, credit losses and the 11.1% common-equity Tier 1 ratio. These indicators affect earnings capacity and the amount of capital available for dividends and repurchases.

Management’s stated 2026 priorities include expanding the sales force, producing balance-sheet growth, continuing repurchases and using artificial intelligence to improve operating scale. Investors can also track growth in the Texas and Colorado operations acquired with Independent Bank Group and the pace of recruiting in SouthState’s existing markets. The next dividend declaration will establish the subsequent ex-dividend schedule and confirm whether the $0.66 quarterly rate is maintained.