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Fifth Third (FITB) Announces a 6% Hike in Quarterly Dividend
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Fifth Third Bancorp (FITB - Free Report) announced a quarterly cash dividend of 35 cents per share, indicating an increase of 6% from the prior payout. The dividend will be paid out on Oct 16 to shareholders of record as of Sep 30.
Based on the Sep 12 closing price of $27.47, Fifth Third's annual dividend yield, post the dividend hike, stands at 5.09%.
This marks the eighth consecutive year of dividend hikes by Fifth Third. Prior to the recent hike, it increased its dividend by 10% in September 2022. FITB raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 10.9%. Currently, the company's payout ratio is 36% of earnings.
Apart from the regular dividend payments, the bank has a share repurchase program in place. However, the same remained suspended until the second quarter of 2023 to take advantage of the expected increase in loan volumes and the Dividend Financial deal. Nonetheless, in addition to utilizing capital for organic growth and non-bank strategic initiatives, the bank is committed to repurchase shares with excess capital to maximize shareholder value.
In the last three to five years, Fifth Third witnessed earnings per share growth of 10.9% compared with the industry’s average of 6.1%.
Fifth Third has maintained a strong balance sheet. As of Jun 30, the company’s total liquidity of $100 billion exceeded its total debt (comprising of long-term debt and other short-term borrowings) of $18.1 billion, reflecting manageable debt levels. Its decent cash levels are likely to boost investors’ confidence in the stock.
Supported by its resilient balance sheet and strong earnings profile, the company is expected to continue with efficient capital distribution activities. Through this, Fifth Third will keep enhancing shareholder value.
Over the past three months, shares of FITB have gained 5.9% against the industry’s fall of 0.9%.
Over the past month, Capital City Bank Group Inc. (CCBG - Free Report) and Summit Financial Group, Inc. (SMMF - Free Report) announced increases in their quarterly dividend payouts.
CCBG has raised its quarterly cash dividends by 11.1%. The company will now pay out a dividend of 20 cents per share, which will be paid out on Sep 25 to shareholders of record as of Sep 11.
Capital City's annual dividend yield, post the dividend hike, stands at 2.64% based on yesterday’s closing price of $30.21. Prior to the recent hike, it increased its dividend by 5.9% in February 2023. CCBG raised its quarterly dividend eight times in the last five years. Also, it has a five-year annualized dividend growth of 13.8%. Currently, the company's payout ratio is 23% of earnings.
SMMF announced a quarterly cash dividend of 22 cents per share, marking an increase of 10% from the prior payout. The dividend will be paid out on Sep 29 to shareholders of record on Sep 15.
Prior to this hike, the company increased its dividend by 11.1% in August 2022. SMMF has raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 8.7%. Currently, its payout ratio is 21% of earnings.
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Fifth Third (FITB) Announces a 6% Hike in Quarterly Dividend
Fifth Third Bancorp (FITB - Free Report) announced a quarterly cash dividend of 35 cents per share, indicating an increase of 6% from the prior payout. The dividend will be paid out on Oct 16 to shareholders of record as of Sep 30.
Based on the Sep 12 closing price of $27.47, Fifth Third's annual dividend yield, post the dividend hike, stands at 5.09%.
This marks the eighth consecutive year of dividend hikes by Fifth Third. Prior to the recent hike, it increased its dividend by 10% in September 2022. FITB raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 10.9%. Currently, the company's payout ratio is 36% of earnings.
Apart from the regular dividend payments, the bank has a share repurchase program in place. However, the same remained suspended until the second quarter of 2023 to take advantage of the expected increase in loan volumes and the Dividend Financial deal. Nonetheless, in addition to utilizing capital for organic growth and non-bank strategic initiatives, the bank is committed to repurchase shares with excess capital to maximize shareholder value.
In the last three to five years, Fifth Third witnessed earnings per share growth of 10.9% compared with the industry’s average of 6.1%.
Fifth Third has maintained a strong balance sheet. As of Jun 30, the company’s total liquidity of $100 billion exceeded its total debt (comprising of long-term debt and other short-term borrowings) of $18.1 billion, reflecting manageable debt levels. Its decent cash levels are likely to boost investors’ confidence in the stock.
Supported by its resilient balance sheet and strong earnings profile, the company is expected to continue with efficient capital distribution activities. Through this, Fifth Third will keep enhancing shareholder value.
Over the past three months, shares of FITB have gained 5.9% against the industry’s fall of 0.9%.
Image Source: Zacks Investment Research
Fifth Third currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Companies Taking Similar Steps
Over the past month, Capital City Bank Group Inc. (CCBG - Free Report) and Summit Financial Group, Inc. (SMMF - Free Report) announced increases in their quarterly dividend payouts.
CCBG has raised its quarterly cash dividends by 11.1%. The company will now pay out a dividend of 20 cents per share, which will be paid out on Sep 25 to shareholders of record as of Sep 11.
Capital City's annual dividend yield, post the dividend hike, stands at 2.64% based on yesterday’s closing price of $30.21. Prior to the recent hike, it increased its dividend by 5.9% in February 2023. CCBG raised its quarterly dividend eight times in the last five years. Also, it has a five-year annualized dividend growth of 13.8%. Currently, the company's payout ratio is 23% of earnings.
SMMF announced a quarterly cash dividend of 22 cents per share, marking an increase of 10% from the prior payout. The dividend will be paid out on Sep 29 to shareholders of record on Sep 15.
Prior to this hike, the company increased its dividend by 11.1% in August 2022. SMMF has raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 8.7%. Currently, its payout ratio is 21% of earnings.