We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fifth Third (FITB) Announces 22% Dividend Hike: Worth a Look?
Read MoreHide Full Article
Fifth Third Bancorp (FITB - Free Report) has raised its quarterly common stock dividend by about 22% to 22 cents per share. The dividend will be paid on Jan 15, 2019, to shareholders of record as of Dec 31, 2018.
Fifth Third’s robust business model reflects the company’s commitment toward returning value to shareholders with its strong cash-generation capabilities. Prior to this revision, the company had raised its quarterly dividend to 18 cents per share in June 2018, marking a 12.5% hike.
In 2018, Fifth Third submitted a capital plan to the Federal Reserve Board, seeking approval for dividend hike and common stock repurchases. The move followed the Fed’s approval of dividend hike and stock buyback after the completion of stress tests to assess banks’ financial position.
Considering last day’s closing price of $23.42 per share, the dividend yield is currently valued at 3.76%. Additionally, the company has a share-repurchase program of up to $1.65 billion, with additional buyback ability depending on after-tax gains from sale of Worldpay in place.
Investors interested in this Zacks Rank #3 (Hold) stock can have a look at the bank’s fundamentals and growth prospects.
Revenue Growth: Fifth Third continues to make steady progress toward bolstering its revenues. The company has expanded its non-interest income base, which now represents more than 42% of total revenues, and expects fee income to increase in the near term. Also, it is focused on strategic investments through North Star initiatives, which are expected to result in revenue growth, expense savings and operational excellence.
The company’s projected sales growth (F1/F0) of 14.83% indicates constant upward momentum in revenues.
Earnings Per Share Strength: This banking giant has witnessed earnings growth of 6.06% in the last three-five years. Additionally, the company’s long-term (three-five years) estimated EPS growth rate of 7.17% promises rewards for investors over the long run. Good news is that the company pulled off average positive earnings surprise of 10.38% over the trailing four quarters.
Stock Looks Undervalued: Fifth Third seems undervalued as compared with the industry. Its price-to-book and price-to-earnings ratios are below the respective industry averages.
Share Price Movement: Fifth Third’s shares have lost around 23.2% over the past year compared with 17.1% decline recorded by the industry.
Some other finance stocks which raised their dividends during the current quarter include Eaton Vance Corp. (EV - Free Report) , Associated Banc-Corp (ASB - Free Report) and Raymond James Financial, Inc. (RJF - Free Report) . Eaton Vance raised its quarterly dividend by 12.9%, while Raymond James increased by 13.3%. Also, Associated Banc-Corp has announced a 13.3% rise in common stock dividend.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Fifth Third (FITB) Announces 22% Dividend Hike: Worth a Look?
Fifth Third Bancorp (FITB - Free Report) has raised its quarterly common stock dividend by about 22% to 22 cents per share. The dividend will be paid on Jan 15, 2019, to shareholders of record as of Dec 31, 2018.
Fifth Third’s robust business model reflects the company’s commitment toward returning value to shareholders with its strong cash-generation capabilities. Prior to this revision, the company had raised its quarterly dividend to 18 cents per share in June 2018, marking a 12.5% hike.
In 2018, Fifth Third submitted a capital plan to the Federal Reserve Board, seeking approval for dividend hike and common stock repurchases. The move followed the Fed’s approval of dividend hike and stock buyback after the completion of stress tests to assess banks’ financial position.
Considering last day’s closing price of $23.42 per share, the dividend yield is currently valued at 3.76%. Additionally, the company has a share-repurchase program of up to $1.65 billion, with additional buyback ability depending on after-tax gains from sale of Worldpay in place.
Investors interested in this Zacks Rank #3 (Hold) stock can have a look at the bank’s fundamentals and growth prospects.
Revenue Growth: Fifth Third continues to make steady progress toward bolstering its revenues. The company has expanded its non-interest income base, which now represents more than 42% of total revenues, and expects fee income to increase in the near term. Also, it is focused on strategic investments through North Star initiatives, which are expected to result in revenue growth, expense savings and operational excellence.
The company’s projected sales growth (F1/F0) of 14.83% indicates constant upward momentum in revenues.
Earnings Per Share Strength: This banking giant has witnessed earnings growth of 6.06% in the last three-five years. Additionally, the company’s long-term (three-five years) estimated EPS growth rate of 7.17% promises rewards for investors over the long run. Good news is that the company pulled off average positive earnings surprise of 10.38% over the trailing four quarters.
Stock Looks Undervalued: Fifth Third seems undervalued as compared with the industry. Its price-to-book and price-to-earnings ratios are below the respective industry averages.
Share Price Movement: Fifth Third’s shares have lost around 23.2% over the past year compared with 17.1% decline recorded by the industry.
Some other finance stocks which raised their dividends during the current quarter include Eaton Vance Corp. (EV - Free Report) , Associated Banc-Corp (ASB - Free Report) and Raymond James Financial, Inc. (RJF - Free Report) . Eaton Vance raised its quarterly dividend by 12.9%, while Raymond James increased by 13.3%. Also, Associated Banc-Corp has announced a 13.3% rise in common stock dividend.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>