Huntington Bancshares Inc's Dividend Analysis
Insights into Huntington Bancshares Inc's Upcoming Dividend and Historical Performance
Huntington Bancshares Inc (NASDAQ:HBAN) recently announced a dividend of $0.16 per share, payable on 2024-01-02, with the ex-dividend date set for 2023-12-15. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Huntington Bancshares Inc's dividend performance and assess its sustainability.
What Does Huntington Bancshares Inc Do?
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Huntington Bancshares is a regional bank holding company headquartered in Columbus, Ohio. The bank has a network of branches and ATMs across eight Midwestern states. Founded in 1866, Huntington National Bank and its affiliates provide consumer, small-business, commercial, treasury management, wealth management, brokerage, trust, and insurance services. Huntington also provides auto dealer, equipment finance, national settlement, and capital market services that extend beyond its core states.
A Glimpse at Huntington Bancshares Inc's Dividend History
Huntington Bancshares Inc has maintained a consistent dividend payment record since 1984. Dividends are currently distributed on a quarterly basis. Moreover, Huntington Bancshares Inc has increased its dividend each year since 2009, joining the ranks of dividend achievers, a status given to companies with at least 14 consecutive years of dividend increases. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Huntington Bancshares Inc's Dividend Yield and Growth
As of today, Huntington Bancshares Inc currently has a 12-month trailing dividend yield of 4.71% and a 12-month forward dividend yield of 4.71%, indicating expectations of consistent dividend payments over the next year. Over the past three years, Huntington Bancshares Inc's annual dividend growth rate was 2.20%. This growth rate increased to 10.40% per year over a five-year horizon and reached an impressive 16.50% over the past decade. Consequently, the 5-year yield on cost for Huntington Bancshares Inc stock is approximately 7.72% as of today.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of 2023-09-30, Huntington Bancshares Inc's dividend payout ratio is 0.41, suggesting a balance between distributing earnings and retaining funds for future growth. The company's profitability rank is 6 out of 10 as of 2023-09-30, indicating fair profitability, supported by a decade of positive net income.
Growth Metrics: The Future Outlook
Huntington Bancshares Inc's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a solid revenue model, albeit underperforming approximately 64% of global competitors. The 3-year EPS growth rate and 5-year EBITDA growth rate also show Huntington Bancshares Inc's capability to grow earnings, essential for sustaining dividends, though these metrics underperform compared to many global competitors.
Next Steps
In conclusion, Huntington Bancshares Inc's upcoming dividend, consistent dividend growth, prudent payout ratio, and fair profitability and growth metrics present a picture of a company committed to rewarding its shareholders while maintaining a balance for future sustainability. As value investors consider the prospects of Huntington Bancshares Inc, they should weigh these factors alongside broader industry trends and regulatory developments. Will Huntington Bancshares Inc continue its trajectory of dividend growth, and how will it adapt to evolving market conditions? For investors seeking high-dividend yield opportunities, GuruFocus Premium offers the High Dividend Yield Screener as a valuable tool for discovery.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
