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WesBanco Rewards Shareholders With 2.8% Hike in Quarterly Dividend

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WesBanco, Inc. (WSBC - Free Report) announced a quarterly cash dividend of 37 cents per share, reflecting an increase of 2.8% from the prior payout. The dividend will be paid out on Jan. 2, 2025, to shareholders of record as of Dec. 6, 2024. This represents the 18th increase in the quarterly dividend since 2010.

Prior to this, the company increased its dividend by 2.9% to 36 cents per share in July 2024. The company has a five-year annualized dividend growth of 3.19%. At present, its payout ratio is 67% of its earnings. 

Based on its closing price of $36.06 as of Nov. 21, 2024, WesBanco’s current dividend yield is 4%.

WesBanco’s Share Repurchase Program

In February 2022, the company announced a new share repurchase program for up to 3.2 million shares of the company's common stock. This authorization was in addition to its previous repurchase program, which was initially approved in August 2021 for same authorization amount. 

WSBC did not repurchase any shares in the first nine months of 2024. As of Sept. 30, 2024, 972,298 shares remained available under the authorization.

WSBC's Capital Distribution Plan Seems Unsustainable

The company’s capital distribution activities keep us apprehensive. As of Sept. 30, 2024, WSBC had total debt (comprising Federal Home Loan Bank borrowings, other short-term and subordinated debt and junior subordinated debt borrowings) of $1.6 billion, while the company’s liquid assets (including its cash and due from banks, and due from banks - interest bearing) as of the same date were $620.9 million. Given the weak liquidity position, the bank’s share repurchase moves seem unsustainable.

WesBanco’s Price Performance & Zacks Rank

In the past six months, WSBC shares have gained 30.8% compared with the industry’s growth of 30%. 

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WSBC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps by Other Banks

Popular, Inc.’s (BPOP - Free Report) board of directors approved a sequential hike in its quarterly cash dividend. The company declared a quarterly cash dividend of 70 cents per share, reflecting a rise of 12.9% from the prior payout. The dividend will be paid out on Jan. 2, 2025, to shareholders of record as of Dec. 6, 2024.

Prior to this, Popular hiked its dividend by 12.7% to 62 cents per share in November 2023. 

First National Corporation (FXNC - Free Report) hiked its quarterly cash dividend by 3.3% to 15.5 cents per share. The dividend will be paid out on Dec. 13, 2024, to shareholders of record as of Nov. 29.

FXNC has raised its dividend consecutively in the last 10 years. Before the recent hike, the bank increased its dividend by 7.1% to 15 cents per share in February 2023.


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