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Is Cullen/Frost Well-Positioned to Sustain Its Capital Return Strategy?
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Key Takeaways
CFR maintains disciplined capital returns via dividend hikes and share buybacks to reward shareholders.
CFR raised its quarterly dividend 3% to $1.03, with 7.37% 5-year growth and 39% payout ratio.
CFR's dividend yield stands at 2.88%, supported by strong liquidity and buyback capacity.
Cullen/Frost Bankers, Inc. (CFR - Free Report) maintains a disciplined capital distribution approach, aiming to return value to shareholders through dividends and share repurchases.
In April 2026, the company announced a 3% increase in its quarterly dividend to $1.03 per share. Over the past five years, CFR has delivered a five-year annualized dividend growth rate of 7.37% and currently has a payout ratio of 39%.
Based on Friday’s closing price of $138.85, its annualized dividend yield stands at 2.88%, higher than the industry average of 2.36%. Rather than pursuing aggressive dividend hikes, the company has prioritized a steady and sustainable payout policy, which strengthens its long-term financial position and supports investor confidence.
Dividend Yield
Image Source: Zacks Investment Research
Apart from dividends, Cullen/Frost has been actively executing share repurchases. On Jan. 28, 2026, the company’s board of directors authorized a $300 million stock repurchase program, allowing repurchases over a one-year period through Jan. 27, 2027. As of March 31, 2026, nearly $230 million remained available under the current authorization.
These capital return initiatives are supported by the company’s solid liquidity position and manageable leverage profile. As of March 31, 2026, Cullen/Frost’s liquidity totaled $7.2 billion. As of the same date, short-term debt was $4.1 billion, while long-term debt was $223 million. Further, the company’s debt/equity ratio compares favorably with that of the broader industry.
CFR’s consistent dividend growth, active share repurchases and disciplined payout strategy reflect strong capital management and financial stability. Backed by solid liquidity and earnings strength, the company appears well-positioned to sustain capital distribution activities and support long-term shareholder value.
How Is CFR Placed in Capital Returns Compared With Peers?
Cullen/Frost’s closest peers in the regional banking space include BOK Financial (BOKF - Free Report) and First Horizon (FHN - Free Report) .
BOK Financial has maintained a steady capital distribution strategy. In February 2026, the company raised its dividend by 10.5% to 63 cents per share, continuing its consistent pattern of annual dividend increases supported by stable earnings. BOK Financial also has an active buyback program, with a new authorization of up to 5 million shares approved in July 2025. As of March 31, 2026, about 2.9 million shares remained available for repurchase. However, its capital position is partly offset by a relatively weaker liquidity profile, with $4.6 billion in total debt versus $1.1 billion in cash and equivalents, indicating a limited cushion in a stressed environment.
On the other hand, First Horizon continues to demonstrate a balanced capital return profile supported by a decent liquidity position. As of March 31, 2026, the company held $2.5 billion in cash and interest-bearing deposits, while short-term borrowings stood at $1.9 billion and term borrowings at $1.3 billion. In January 2026, First Horizon increased its quarterly dividend by 13.3% to 17 cents per share, reflecting steady payout growth. It also maintains an active buyback program, with the board authorizing a $1.2 billion repurchase plan in October 2025. As of March 31, 2026, $765 million remained available under this authorization.
CFR’s Price Performance and Zacks Rank
Over the past three months, shares of CFR have gained 11.7%, outperforming the industry’s 9.9% growth.
View the Zacks #1 Rank List
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Is Cullen/Frost Well-Positioned to Sustain Its Capital Return Strategy?
Key Takeaways
Cullen/Frost Bankers, Inc. (CFR - Free Report) maintains a disciplined capital distribution approach, aiming to return value to shareholders through dividends and share repurchases.
In April 2026, the company announced a 3% increase in its quarterly dividend to $1.03 per share. Over the past five years, CFR has delivered a five-year annualized dividend growth rate of 7.37% and currently has a payout ratio of 39%.
Based on Friday’s closing price of $138.85, its annualized dividend yield stands at 2.88%, higher than the industry average of 2.36%. Rather than pursuing aggressive dividend hikes, the company has prioritized a steady and sustainable payout policy, which strengthens its long-term financial position and supports investor confidence.
Dividend Yield
Image Source: Zacks Investment Research
Apart from dividends, Cullen/Frost has been actively executing share repurchases. On Jan. 28, 2026, the company’s board of directors authorized a $300 million stock repurchase program, allowing repurchases over a one-year period through Jan. 27, 2027. As of March 31, 2026, nearly $230 million remained available under the current authorization.
These capital return initiatives are supported by the company’s solid liquidity position and manageable leverage profile. As of March 31, 2026, Cullen/Frost’s liquidity totaled $7.2 billion. As of the same date, short-term debt was $4.1 billion, while long-term debt was $223 million. Further, the company’s debt/equity ratio compares favorably with that of the broader industry.
CFR’s consistent dividend growth, active share repurchases and disciplined payout strategy reflect strong capital management and financial stability. Backed by solid liquidity and earnings strength, the company appears well-positioned to sustain capital distribution activities and support long-term shareholder value.
How Is CFR Placed in Capital Returns Compared With Peers?
Cullen/Frost’s closest peers in the regional banking space include BOK Financial (BOKF - Free Report) and First Horizon (FHN - Free Report) .
BOK Financial has maintained a steady capital distribution strategy. In February 2026, the company raised its dividend by 10.5% to 63 cents per share, continuing its consistent pattern of annual dividend increases supported by stable earnings. BOK Financial also has an active buyback program, with a new authorization of up to 5 million shares approved in July 2025. As of March 31, 2026, about 2.9 million shares remained available for repurchase. However, its capital position is partly offset by a relatively weaker liquidity profile, with $4.6 billion in total debt versus $1.1 billion in cash and equivalents, indicating a limited cushion in a stressed environment.
On the other hand, First Horizon continues to demonstrate a balanced capital return profile supported by a decent liquidity position. As of March 31, 2026, the company held $2.5 billion in cash and interest-bearing deposits, while short-term borrowings stood at $1.9 billion and term borrowings at $1.3 billion. In January 2026, First Horizon increased its quarterly dividend by 13.3% to 17 cents per share, reflecting steady payout growth. It also maintains an active buyback program, with the board authorizing a $1.2 billion repurchase plan in October 2025. As of March 31, 2026, $765 million remained available under this authorization.
CFR’s Price Performance and Zacks Rank
Over the past three months, shares of CFR have gained 11.7%, outperforming the industry’s 9.9% growth.
Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.