How Dividend Moves and Analyst Optimism at Cathay General (CATY) Are Shaping Its Investmen

November 23, 2025

  • Cathay General Bancorp recently declared a cash dividend of thirty-four cents per common share, payable on December 11, 2025, to shareholders of record as of December 1, 2025, and filed a US$79.62 million shelf registration for an ESOP-related common stock offering.

  • Analyst commentary has highlighted improvements in net interest income, asset quality, and capital strength following the company’s third-quarter earnings, while market attention focused on the potential impact of interest rate changes and insider stock sales.

  • We will explore how analyst optimism following the company’s financial update frames its outlook in light of newly announced dividend actions.

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To be a shareholder in Cathay General Bancorp, you generally need confidence in its ability to manage credit risk in its concentrated commercial real estate loan portfolio, benefit from steady growth in key Asian-American markets, and continue disciplined capital returns through dividends and share buybacks. The company’s latest dividend announcement signals ongoing commitment to shareholder returns, yet it does little to address the core short term catalyst, sustained credit quality, and does not materially shift the main risk tied to nonperforming commercial real estate loans.

Among recent announcements, the Board’s declaration of another US$0.34 per share cash dividend stands out as the most relevant, underscoring consistent capital return even as credit quality and provisioning remain under scrutiny. While steady dividends and recent revenue growth reflect financial strength, the catalyst for near-term performance remains closely linked to how successfully Cathay General Bancorp contains credit losses within its concentrated real estate loan book. However, investors should be aware that despite steady dividend payouts, rising nonperforming loan levels could still…

Read the full narrative on Cathay General Bancorp (it’s free!)

Cathay General Bancorp’s outlook forecasts $964.1 million in revenue and $393.8 million in earnings by 2028. This scenario implies an annual revenue growth rate of 11.0% and an increase in earnings of $99.1 million from the current $294.7 million.

Uncover how Cathay General Bancorp’s forecasts yield a $52.40 fair value, a 10% upside to its current price.

CATY Earnings & Revenue Growth as at Nov 2025
CATY Earnings & Revenue Growth as at Nov 2025

Only one member of the Simply Wall St Community has weighed in with a fair value of US$52.40, showing little range in community estimates. Still, uncertainty around commercial real estate exposes the company’s outlook to a key area of debate, giving you a reason to compare more viewpoints for a fuller picture.

Explore another fair value estimate on Cathay General Bancorp – why the stock might be worth just $52.40!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CATY.

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