ConnectOne Bancorp Announces Preferred and Common Dividends

The company declares a significant increase in its Series A depositary share distribution for December.

Updated on Oct. 23, 2026 in Corporate Finance

ConnectOne Bancorp Announces Preferred and Common Dividends

Live Poll

Does a significant bank dividend increase make you feel more confident in your personal investment strategy?

ConnectOne Bancorp has declared a quarterly dividend of $0.556620 per Series A depositary share and $0.195 per common share. The preferred share distribution represents a notable increase over the previous payout of $0.328125.

Why it matters

The dividend adjustment follows the conclusion of the preferred stock's 5.25% fixed-rate period on September 1. Moving forward, the rate resets based on the prevailing five-year Treasury rate plus a fixed spread of 4.42% per year.

The new dividend of $0.556620 per Series A depositary share marks a 69.6% increase from the previous distribution. Each depositary share accounts for a 1/40 interest in a Series A preferred share.

The players

ConnectOne Bancorp

This regional bank holding company provides financial services and manages depositary shares for its investors.

The details

Dividends are paid quarterly as determined by the company's board of directors. Shareholders must be on record by the specified November date to qualify for the December payment.

Sept. 1, 2026: The fixed-rate period for the preferred stock ended and the new rate reset.
Nov. 13, 2026: Shareholders of record on this date qualify for the dividend payments.
Dec. 1, 2026: The dividend payment date for the declared distributions.

Market Dynamics

The transition to a variable dividend rate linked to the five-year Treasury rate reflects a broader trend of banks adjusting preferred stock yields to match current interest rate environments. This move aligns the company with market-based benchmarks rather than historical fixed-rate commitments.

Investors holding Series A depositary shares will see a direct increase in their quarterly income per share compared to previous cycles. Those looking to receive the December payment must ensure their holdings are registered by mid-November.

The takeaway

Shareholders should anticipate that future dividend amounts for Series A depositary shares will fluctuate based on movements in the five-year Treasury rate. Maintaining awareness of these rate resets is essential for evaluating the ongoing yield of preferred financial instruments.