10 Small-Cap Dividend Stocks Drive Year-to-Date Gains

5. Financial Institutions, Inc. (NASDAQ:FISI)

Dividend yield: 4.33%

Dividend payout ratio: 37.85%

Ex-Dividend Date: March 14, 2025

Number of Hedge Funds: 6

The market capitalization of Financial Institutions, Inc. (NASDAQ:FISI) now stands at $575.61 million, reflecting a solid 5.02% growth in 2025 so far.

The board of directors approved the financial holding company, headquartered in Western New York, to increase the cash dividend payable to outstanding common shares to $0.31. The announcement follows Angela J. Panzarella’s appointment to the board of directors. In the fourth quarter, the company sold $653.5 million of available-for-sale (“AFS”) investment securities as part of its restructuring. Financial Institutions, Inc. (NASDAQ:FISI)  used the net proceeds from the pre-tax sale of the securities to fund its reinvestment of higher-yielding, agency-wrapped investment securities valued at $566.2 million. The sales and reinvestment together contributed to the increase in the company’s value.

Financial Institutions, Inc. (NASDAQ:FISI) offers a 4.33% dividend yield with a manageable 37.85% payout ratio. Nearly two-thirds of earnings are retained for growth or debt reduction. With six hedge funds in our Insider Monkey database investing in the stock, the institutional interest in the stocks stands low. To benefit from the increased dividend payout on April 2, 2025, investors should buy shares before March 14, 2025.