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Huntington Bancshares boosts dividend to yield nearly double its peer group

Tomi Kilgore

Huntington Bancshares Inc. said Friday it will raise its quarterly dividend by 7%, which effectively increases the regional bank's dividend yield to nearly double its peer group, and more than double the broader stock market. The Ohio-based bank said it will raise its dividend to 15 cents a share from 14 cents, with the new dividend payable Oct. 1 to shareholders of record on Sept. 17. Based on Thursday's stock closing price of $13.76, the new annual dividend rate implies a yield of 4.36%, compared with the yield on the SPDR S&P Regional Bank ETF of $2.26% and the implied yield for the S&P 500 of 1.93%, according to FactSet. Huntington's stock has rallied 15.4% year to date, while the regional bank ETF has advanced 13.1% and the S&P 500 has climbed 19.5%.