Timberland Bancorp Raises Quarterly Dividend to $0.30

Timberland Bancorp, Inc. increased its quarterly dividend to $0.30 per share from $0.29, a 3.45% rise. Shares were scheduled to trade ex-dividend on August 10, 2026.

The new rate equates to an annualized dividend of $1.20 per share and a forward yield of 2.62% at a share price of $45.91. The increase gives the Hoquiam, Washington-based financial-services company two consecutive years of dividend growth following a cut in 2022.

Timberland said strong earnings and its capital position supported the board’s decision to raise the payout. The company reported fiscal third-quarter net income of $7.72 million, or $0.98 per diluted share, compared with $7.10 million, or $0.90 per diluted share, a year earlier. Management also highlighted an improved net interest margin and continued loan growth during the quarter. Timberland Bancorp fiscal third-quarter earnings release

The company’s regulatory filing said the dividend level was intended to balance shareholder capital returns with continued investment in Timberland Bank. It also noted that future dividends remain subject to board discretion and that the bank’s ability to transfer funds to its parent is governed by regulatory and capital requirements. Timberland reported that its bank subsidiary’s capital exceeded the applicable conservation buffer at the end of the fiscal third quarter. Timberland Bancorp Form 10-Q

Timberland Bancorp is the holding company for Timberland Bank, a community-oriented institution founded in 1915. The bank operates across several counties in western Washington and focuses on deposit services and real-estate-secured lending. Timberland Bancorp investor relations overview

What it means for income investors

The increase lifts quarterly income by $0.01 per share and raises the annualized payout to $1.20 per share. Timberland carries a SmarterDividends safety score of 67 and a grade of B, indicating a moderate-to-strong payout profile while still reflecting the risks associated with bank earnings, credit conditions and regulatory capital needs.

With a market capitalization of $356,980,928, Timberland remains a relatively small regional financial institution. Its two-year growth streak represents a renewed period of dividend expansion, though the 2022 reduction remains relevant when assessing the payout’s longer-term record.