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Fifth Third Hikes Quarterly Dividend by 8.1%: Can the Momentum Last?

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Key Takeaways

  • Fifth Third declared a 40-cent dividend, an 8.1% rise from the prior payout.
  • FITB also approved a new 100M-share repurchase plan in June 2025.
  • Cash of $17.3B and a CET1 ratio of 10.56% support capital distributions.

Fifth Third Bancorp (FITB - Free Report) has announced a quarterly dividend of 40 cents per share, marking an 8.1% increase from the prior payout. The dividend will be paid on Oct. 15, 2025, to shareholders of record as of Sept. 30, 2025.

Before this, FITB raised its dividend by 5.7% to 37 cents per share in September 2024. The latest announcement represents the 10th consecutive year of increasing shareholder payouts, with an annualized growth rate of 7.84%.

Based on Friday’s closing price of $45.56, the company's dividend yield stands at 3.25%. With a payout ratio of 44%, FITB is balancing reinvestment with consistent capital returns, reinforcing confidence in its earnings profile and balance sheet resilience.

Dividend Yield

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FITB’s Other Capital Distribution Activities

Beyond dividends, Fifth Third continues to reward shareholders through share buybacks. In June 2025, its board approved a new share repurchase authorization of up to 100 million shares, replacing the previous plan from 2019.

The company maintains a decent liquidity position. As of June 30, 2025, the company had total liquidity (cash and due from banks and other short-term investments) of $16 billion. The total debt stood at $17.9 billion, with $3.4 billion in short-term borrowings as of the same date. Further, as of June 30, 2025, Fifth Third’s common equity tier 1 ratio was 10.56%. 

Supported by decent liquidity and robust capital position, the company is expected to continue with efficient capital distribution activities.

Supported by its resilient balance sheet and strong capital position, the company is expected to continue with efficient capital distribution activities.

FITB's Zacks Rank & Price Performance

Shares of FITB have gained 7.5% compared with the industry’s 18.1% growth over the past year.

Price Performance

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Currently, the company 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 Finance Firms

Last week, U.S. Bancorp (USB - Free Report) 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, USB has increased its dividend five times. Moreover, the company has a five-year annualized dividend growth rate of 4.01%.

In August 2025, TriCo Bancshares (TCBK - Free Report) declared its quarterly cash dividend of 36 cents per share, up nearly 9.1% from the prior payout. The dividend will be payable on Sept. 19, 2025, to shareholders of record as of Sept. 5.

Prior to this announcement, in February 2024, the company hiked its dividend by 10% to 33 cents per share. The latest hike marks the company’s 144th consecutive quarterly dividend. Over the past 15 years, TCBK has raised its quarterly payout 10 times, moving from 9 cents to 36 cents, a fourfold increase.


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