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M&T Bank Rewards Shareholders, Lifts Quarterly Dividend by 11.1%

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Key Takeaways

  • M&T Bank lifted its quarterly dividend by 11.1% to $1.50 per share, payable Sept. 30, 2025.
  • MTB has raised its dividend four times in five years with a 5.36% annualized growth rate.
  • Strong liquidity and $21.4B in cash support MTB's ongoing dividends and buybacks.

M&T Bank Corporation (MTB - Free Report) announced an increase in its quarterly cash dividend. The bank has raised its dividend 11.1% from the prior payout to $1.50 per share. The dividend will be paid out on Sept. 30, 2025, to shareholders of record on Sept. 2.

Prior to the recent hike, in May 2025, MTB increased its dividend by 4% to $1.35 per share. After considering the last day’s closing price of $190.36, M&T Bank’s dividend yield currently stands at 2.84% compared with the industry’s 3.45%. In the last five years, the company has increased its dividend four times with an annualized growth rate of 5.36%.

Dividend Yield

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MTB currently has a payout ratio of 34%. Thus, the bank seems to be maintaining sufficient earnings to fund reinvestment and growth strategies, while continuing to offer attractive returns to shareholders.

MTB’s Other Capital Distribution Activities

Apart from regular dividends, MTB has a share repurchase plan. In January 2025, the board of directors authorized a share repurchase program to repurchase up to $4 billion of the company’s common stock, with no expiration date. As of June 30, 2025, nearly $2.3 billion worth of shares were available under the plan.

As of June 30, 2025, total cash and due from banks and interest-bearing deposits at banks were $21.4 billion, which is higher than the reported total debt of $14.5 billion. Given the solid liquidity position, MTB is expected to sustain its capital distribution activities.

MTB’s Price Performance and Zacks Rank

Over the past year, MTB’s shares have gained 17.8% compared with the industry’s growth of 17.2%.

One Year Price Performance

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Currently, M&T Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Finance Companies

Similarly, this week, Virtus Investment Partners (VRTS - Free Report) also announced an annual hike in its quarterly dividend for the eighth consecutive year. The company declared a quarterly cash dividend of $2.40 per share, indicating a nearly 6.7% rise from the prior payout. The dividend will be paid out on Nov. 14, 2025, to its shareholders of record as of Oct. 31.

Prior to this, in August 2024, VRTS raised its dividend by 18% to $2.25 per share. The company has increased its dividend payout six times in the past five years. Currently, the company’s payout ratio is 34% of its earnings.

In the same month, Zions Bancorporation (ZION - Free Report) announced a quarterly dividend of 45 cents per share, marking an increase of 5% from the prior payout. The dividend will be paid out on Aug. 21, 2025, to shareholders as of Aug. 14, 2025.

Before this, ZION raised its dividend 5% to 43 cents per share in November 2024. The latest announcement represents the fourth hike in the past five years, with an annualized growth rate of 5.20%.


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