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Fulton Financial (FULT) Rewards Shareholders With Dividend Hike

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Fulton Financial Corporation (FULT - Free Report) has declared a quarterly cash dividend of 14 cents per share, representing a hike of 7.7% from the prior payout. The dividend will be paid out on Apr 15 to shareholders of record as of Apr 1.

Based on last day’s closing price of $17.35, the company’s dividend yield currently stands at 3.23%. This yield is not only attractive for income investors but also represents a steady income stream.

Notably, in November 2020, the company announced a special dividend of 4 cents per share, which was paid out on Dec 17 to shareholders of record as of Dec 7. Fulton Financial has been announcing special dividends annually since 2014.

In addition to dividends, the company announced a share buyback plan recently. On Feb 10, 2021, it announced that its board of directors authorized the repurchase of up to $75 million worth of shares. The plan will expire at the end of this year.

Through sustained capital deployment activities, the company is expected to continue enhancing shareholder value.

Thus, investors interested in this Zacks Rank #3 (Hold) stock can have a look at its fundamentals mentioned below.

Earnings: Fulton Financial witnessed earnings growth of 7.8% in the last three-five years. The uptrend is expected to continue in the near term. In 2021, the company’s earnings are projected to grow more than 10%.

It also has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters.

Valuation: Fulton Financial currently seems overvalued when compared with the broader industry. It has a price/earnings (F1) ratio of 15.35, above the industry average of 13.57. Also, its price/book ratio of 1.20 compares slightly unfavorably with the industry’s 1.19.

Leverage: Fulton Financial currently has a debt/equity ratio of 0.53, higher than the industry average of 0.27. This shows that the company has a higher debt burden when compared with peers and hence may not be financially stable in adverse economic conditions.

Return on Equity (ROE): The company’s ROE of 7.54% compares unfavorably with the industry’s 8.54%, reflecting that it does not reinvest its cash more efficiently than peers.

Price Performance: Shares of Fulton Financial have gained 77.8% over the past six months compared with 82.4% growth of the industry it belongs to.






Estimate Revisions: The company has been witnessing upward earnings estimate revisions of late, indicating that analysts are optimistic regarding its earnings growth potential. The Zacks Consensus Estimate for its 2021 earnings has increased 1.7% over the past 30 days. 

Stocks Worth Considering

A few better-ranked stocks from the finance space are mentioned below.

Hope Bancorp, Inc. (HOPE - Free Report) has witnessed an upward earnings estimate revision of 19.3% for 2021 over the past 60 days. Its shares have gained 103% over the past six months. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Waddell & Reed Financial, Inc.’s 2021 earnings estimates have increased 6.6% over the past 60 days. The company’s shares have gained 61.6% over the past six months. At present, it carries a Zacks Rank #2.

The Goldman Sachs Group, Inc. (GS - Free Report) has witnessed an upward earnings estimate revision of 12.3% for the current year over the past 60 days. It currently carries a Zacks Rank of 2. The stock has gained 75.4% over the past six months.

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