% | $
Quotes you view appear here for quick access.

Regions Financial Corporation Message Board

  • bananaoneover bananaoneover Jan 11, 2013 5:51 PM Flag

    Increase in payout

    When and how much will the dividend be increased? I am ready to move $ from my bank account which pays nothing in interest.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Announced today $.12 per share dividend. And a $350 million share repurchase, I am happy with the BOD.

    • OK, USB now predicts quarterly dividend of $.06 vs $.01. That would be a real nice bump, but I myself would be happy with a quarterly bump to $.025 - $.03 per share, $.10 - $.12 per year. The $.24 per year would give my portfolio a nice boost in total yield, but I would prefer baby steps, hold some capital for stronger balance sheet, and maybe share buybacks at these levels. Buybacks, done properly and for the right reasons leave fewer shares, which in turn would increase EPS. A stronger balance sheet would provide increased investor confidence, potentially increasing the price per share. Then, in a year or two, bump up dividend to reflect maybe a 2.5% - 3.00% yield at those prices. In a perfect world, at that point we would all be happy, well, excepting the shorts. Say at $10.00, from here price would have appreciated about 33%, then, give us $.25 - $.30 per share in dividends as a thank you. At that point I would tend to take RF out of my risk turn around portfolio, and consider it part of my dividend income portfolio, since buying now (say $7.50) would get us a yield on cost of 3.33% - 4.00%.

    • OK, assume RF hits or slightly beats the streets estimate this quarter, and meets next (say around the same estimate of $.21), we may just see dividend boost to $.08 - $.10 annual. Only say this conservatively as it would would amount to a small payout percentage, allow them to keep building, Current price per share, $.14 be the very top, close to 2% yield, and still small payout ratio (not even 20% from my thinking). Think prior to July dividend would be the announcement so we have some time to wait.

    • Here was my thoughts posted on the first in the Street thread:

      "OK, take this with a grain of salt:

      "Assuming Miller is correct about a "modest settlement," the patience of Regions Financial's long-term investors may be rewarded with a significant dividend increase during 2011. Guggenheim analyst Marty Mosby rates Regions a "Buy," with a price target of $9, and estimates that the company will raise its quarterly dividend from a penny a share to a nickel following"

      1) Don't Cramer write for the Street" If so, Cramer fun, but doesn't seem right very often, so the Street loses credibility.

      2) Not familiar with Guggenheim, so not sure on theirs either.

      That said, consensus earnings is $0.77 for 2013, and $0.82 for 2014. Seems Region's, with some toe stubbing, is trying to get things going. I'd be happy with a 15% - 20% payout ratio (let them keep improving the balance sheet and get some real solid footing) for 2013 and 2014.

      Conclusion, I would be happy for a bump from $.04 to $.08 - $.12 per share for 2013, and maybe if things keep going, $.12 - $.16 per share in 2014.

      Me, with the current state of interest rates, I would be happy with a yield of 1.12% - 1.68% and a decent chance of rising share price for this year. "

      That said, ain't gonna get much more yield in this baby for quite a while. If you are looking for yield, maybe look at GE 3.6%, INTC 4.09% or PEP 3.03%. KO a tad low at 2.76%, but should be increasing dividend shortly. Also MRK, PFE and DD, all have much better yields.

      • 2 Replies to shaggy_21666
      • "KO a tad low at 2.76%, but should be increasing dividend shortly"

        OK, KO announced dividend increase today. So if you purchased anytime on January 14th (range of $36.80 - $37.11, first trade day after my comment) yield on cost would be over 3%. Even today , (currently as I type, $37.68) it would yield around 2.97%. Now, INTC trading today at $20.25, is starting to get real compelling. Yield is 4.44%, has some things in the pipeline, and am thinking sometime around August it bumps it's dividend, thinking close to $1.00. At a $20.25 purchase price that yield would jump to 4.94% or so.

      • Also for yield, look at PFE, T and GSK. And, if you want to take a decent gamble, look at AAPL, way oversold and its yield is now over 2%. If you like etf's, look at VYM and VIG

9.86+0.07(+0.72%)Aug 29 4:00 PMEDT