In a few weeks, we should know how much the company can increase the dividend. I think it will be raised to $1 per year. Do other people think it will be less. If it is less. will a larger stock buy back occur?
Lets review the increase history since the dividends crashed. As of 12/14/10, they were declared at .05 per Q. Then on 3/18/11, declared .125 per Q, up .075. Then on 3/13/12, up another .07 to .195 per Q. which is where the divey stands as of now. I do not see, given the strong capital position, quality assets and balance sheet, improving economy, improving credit quality, decreasing loan loss reserves and several other factors, why the Fed and the BOD's would not be authorized to again approve and declare at LEAST another .07 increase or better. I am betting come mid-March they will announce at least $.27 dividend per Q or $1.08 per year. A home run would be to allow USB to get close to .30 per Q (probably dreaming though). My two cents worth. We'll see soon.