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U.S. Bancorp Rewards Shareholders With 4% Dividend Hike, Shares Up

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Key Takeaways

  • U.S. Bancorp raised its quarterly dividend to 52 cents per share, up 4% from the prior payout.
  • The annualized dividend totaled $2.08 per share, with a yield of 4.05% at $49.37.
  • USB also has a $5B share buyback plan, with $4.8B still available as of June 30, 2025.

Shares of U.S. Bancorp (USB - Free Report) gained nearly 1.5% during yesterday's trading session after the company announced a quarterly cash dividend of 52 cents per share, reflecting a 4% hike compared with the preceding payout. The dividend will be payable on Oct. 15, 2025, to shareholders of record as of Sept. 30, 2025. At this rate, the annualized dividend of the company comes to $2.08 per share.

Earlier, in September 2024, the bank raised its dividend by 2% to 50 cents per share. Over the past five years, U.S. Bancorp has increased its dividend five times. Moreover, the company has a five-year annualized dividend growth rate of 4.01%.

Based on yesterday’s closing price of $49.37, the dividend yield is 4.05%, above the industry average of 3.35%. With a payout ratio of 47%, the bank is balancing reinvestment needs with steady shareholder rewards.

Dividend Yield

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Image Source: Zacks Investment Research

USB’s Other Capital Distribution Activities

Beyond dividends, USB has actively pursued share buybacks. In September 2024, USB’s board authorized a $5 billion share repurchase plan. As of June 30, 2025, nearly $4.8 billion worth of shares were available under the plan.

Meanwhile, the company has a decent liquidity profile. As of June 30, 2025, total cash and due from banks were $57.8 billion. Further, USB had a long-term debt of $64 billion and short-term borrowings of $15 billion as of the same date.

Supported by a decent liquidity position, the company is well-positioned to sustain efficient capital deployment in the future.

USB’s Price Performance and Zacks Rank

In the past six months, shares of the company have risen 18.7% compared with the industry’s 19.8% growth.

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Image Source: Zacks Investment Research

Currently, U.S. Bancorp 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

In August 2025, M&T Bank Corporation (MTB - Free Report) announced an increase in its quarterly cash dividend. The bank has raised its dividend by 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%.

In the same month, 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.


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