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First Horizon (FHN) Cheers Investors With 33% Dividend Hike
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First Horizon National Corporation's (FHN - Free Report) board of directors has approved a 33% hike in the company’s quarterly common stock dividend. The revised quarterly dividend now comes to 12 cents per share. The dividend will be paid on Apr 2 to its shareholders of record as of Mar 9, 2018.
Prior to this hike, the company had raised its dividend by 29% to 9 cents per share in January 2017.
Along with the common stock dividend, the company will also pay a per share dividend of $1,550 on the company’s Non-Cumulative Perpetual Preferred Stock, Series A, on Apr 10 to its shareholders of record as of Mar 23, 2018.
The directors of First Horizon also announced a new common share repurchase program. It includes a $250 million share repurchase authorization, which expires on Jan 31, 2020. This program replaced an old repurchase plan announced in 2014, expiring on Jan 31, 2018. Supported by a solid balance sheet position, the company continues to enhance its shareholders’ value through efficient capital deployment activities.
We remain optimistic about its potential to continue enhancing shareholder value, driven by its strong cash generation capabilities.
Considering Tuesday’s closing price of $20.11 per share, the dividend yield comes to 2.4%.
Investors interested in this Zacks Rank #2 (Buy) stock can have a look at its fundamentals and growth prospects.
Earnings Strength: First Horizon depicts a stable earnings picture. In the past three to five years, the bank witnessed earnings per share (EPS) growth of 38.6%. Also, the company’s earnings are projected to grow at the rate of 27.9% for the current year.
Further, the company’s earnings are projected to grow at a rate of 7% over the long term.
Leverage: First Horizon displays strong financial leverage. Its debt/equity ratio of 0.27 compares favorably with the industry average of 0.29, indicating a lower debt burden relative to the industry.
Return on Equity (ROE): The company’s ROE of 8.8% is higher than the industry average of 8.47%. This reflects that it is more efficient in utilizing shareholder funds compared to its peers.
Stock is Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a favorable rank — Zacks Rank #1 (Strong Buy) or 2 — offer the best upside potential.
Further, the stock looks undervalued based on its price-to-earnings (P/E), price-to-sales (P/S) and price-to-book (P/B) ratios. The company currently has a P/E ratio of 14.20, P/S ratio of 3.18 and a trailing 12-month P/B of 1.05, which are below the industry averages of 14.94, 3.18 and 1.05, respectively.
However, the company’s shares have gained 11.4% in the last six months, against 12.4% growth for the industry it belongs to.
Other Stocks to Consider
The Zacks Consensus Estimate for First Community Corporation (FCCO - Free Report) has increased 3% for 2018, in the last 30 days. The company’s share price has increased 11.3% in the past year. It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synovus Financial Corp. (SNV - Free Report) has witnessed 17.1% upward earnings estimate revision for 2018, in the last 30 days. Its share price has risen 19.7% in the past year. It currently carries a Zacks Rank of 2.
Carolina Financial Corp. also carries a Zacks Rank #2. Its shares have gained 27.1% in a year and its earnings estimates for 2018 have moved up 14% in the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
First Horizon (FHN) Cheers Investors With 33% Dividend Hike
First Horizon National Corporation's (FHN - Free Report) board of directors has approved a 33% hike in the company’s quarterly common stock dividend. The revised quarterly dividend now comes to 12 cents per share. The dividend will be paid on Apr 2 to its shareholders of record as of Mar 9, 2018.
Prior to this hike, the company had raised its dividend by 29% to 9 cents per share in January 2017.
Along with the common stock dividend, the company will also pay a per share dividend of $1,550 on the company’s Non-Cumulative Perpetual Preferred Stock, Series A, on Apr 10 to its shareholders of record as of Mar 23, 2018.
The directors of First Horizon also announced a new common share repurchase program. It includes a $250 million share repurchase authorization, which expires on Jan 31, 2020. This program replaced an old repurchase plan announced in 2014, expiring on Jan 31, 2018. Supported by a solid balance sheet position, the company continues to enhance its shareholders’ value through efficient capital deployment activities.
We remain optimistic about its potential to continue enhancing shareholder value, driven by its strong cash generation capabilities.
Considering Tuesday’s closing price of $20.11 per share, the dividend yield comes to 2.4%.
Investors interested in this Zacks Rank #2 (Buy) stock can have a look at its fundamentals and growth prospects.
Earnings Strength: First Horizon depicts a stable earnings picture. In the past three to five years, the bank witnessed earnings per share (EPS) growth of 38.6%. Also, the company’s earnings are projected to grow at the rate of 27.9% for the current year.
Further, the company’s earnings are projected to grow at a rate of 7% over the long term.
Leverage: First Horizon displays strong financial leverage. Its debt/equity ratio of 0.27 compares favorably with the industry average of 0.29, indicating a lower debt burden relative to the industry.
Return on Equity (ROE): The company’s ROE of 8.8% is higher than the industry average of 8.47%. This reflects that it is more efficient in utilizing shareholder funds compared to its peers.
Stock is Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a favorable rank — Zacks Rank #1 (Strong Buy) or 2 — offer the best upside potential.
Further, the stock looks undervalued based on its price-to-earnings (P/E), price-to-sales (P/S) and price-to-book (P/B) ratios. The company currently has a P/E ratio of 14.20, P/S ratio of 3.18 and a trailing 12-month P/B of 1.05, which are below the industry averages of 14.94, 3.18 and 1.05, respectively.
However, the company’s shares have gained 11.4% in the last six months, against 12.4% growth for the industry it belongs to.
Other Stocks to Consider
The Zacks Consensus Estimate for First Community Corporation (FCCO - Free Report) has increased 3% for 2018, in the last 30 days. The company’s share price has increased 11.3% in the past year. It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synovus Financial Corp. (SNV - Free Report) has witnessed 17.1% upward earnings estimate revision for 2018, in the last 30 days. Its share price has risen 19.7% in the past year. It currently carries a Zacks Rank of 2.
Carolina Financial Corp. also carries a Zacks Rank #2. Its shares have gained 27.1% in a year and its earnings estimates for 2018 have moved up 14% in the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>