U.S. markets open in 8 hours 20 minutes

  • S&P Futures

    4,128.50
    +5.00 (+0.12%)
     

  • Dow Futures

    33,947.00
    +13.00 (+0.04%)
     

  • Nasdaq Futures

    12,535.00
    +19.50 (+0.16%)
     

  • Russell 2000 Futures

    1,968.20
    +3.10 (+0.16%)
     

  • Crude Oil

    75.26
    +1.15 (+1.55%)
     

  • Gold

    1,887.60
    +8.10 (+0.43%)
     

  • Silver

    22.38
    +0.14 (+0.62%)
     

  • EUR/USD

    1.0740
    +0.0009 (+0.09%)
     

  • 10-Yr Bond

    3.6340
    0.0000 (0.00%)
     

  • Vix

    19.43
    +1.10 (+6.00%)
     

  • GBP/USD

    1.2047
    +0.0023 (+0.19%)
     

  • USD/JPY

    132.2020
    -0.4050 (-0.31%)
     

  • BTC-USD

    22,930.22
    +155.17 (+0.68%)
     

  • CMC Crypto 200

    526.52
    +1.39 (+0.26%)
     

  • FTSE 100

    7,836.71
    -65.09 (-0.82%)
     

  • Nikkei 225

    27,676.61
    -17.04 (-0.06%)
     

KeyCorp (KEY) Stock Up on 5.1% Hike in Quarterly Dividend

Zacks Equity Research
·2 min read

Shares of KeyCorp KEY gained 1.1% in aftermarket trading in response to its board of directors’ approval of a hike in the quarterly cash dividend. The new dividend of 20.5 cents per share represents an increase of 5.1% from the prior payout. The dividend will be paid out on Dec 15 to shareholders on record as of Nov 29.

Considering the last day’s closing price, KEY’s dividend yield currently stands at 4.39%, which is impressive compared with the industry average of 3.38%. The yield is attractive for income investors and represents a steady income stream.

KEY has a record of continuously raising dividends. Prior to this hike, the company announced a dividend hike in November 2021. The dividend was increased from 18.5 cents per share to 19.5 cents.

KeyCorp has raised its quarterly dividend five times in the last five years. Also, it has a five-year annualized dividend growth rate of 10.7%. Currently, the company's payout ratio is 36% of earnings.

The company also has an efficient share repurchase plan. In July 2021, KEY announced a share repurchase authorization of up to $1.5 billion through the third quarter of 2022. Also, in October 2022, KeyCorp’s board of directors approved an extension of the remaining $790-million existing share repurchase program through the third quarter of 2023.

Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, KeyCorp will keep enhancing shareholder value.

Over the past six months, shares of KEY have gained 1.7%, underperforming 6.1% rally of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dividend Hikes by Other Banks

Last month, banks like Prosperity Bancshares, Inc. PB and Associated Banc-Corp ASB announced an increase in their quarterly dividend payouts.

Prosperity Bancshares announced that its Board of Directors approved a quarterly dividend of 55 cents per share, representing a hike of 5.8% from the prior payout. The dividend will be paid out on Jan 3, 2023, to shareholders of record as on Dec 15, 2022.  

Similarly, Associated Banc-Corp declared a regular quarterly cash dividend of 21 cents per share, marking a 5% increase from the prior payout. The dividend will be paid out on Dec 15 to shareholders of record as on Dec 1.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
KeyCorp (KEY) : Free Stock Analysis Report
 
Prosperity Bancshares, Inc. (PB) : Free Stock Analysis Report
 
Associated BancCorp (ASB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Recommended Stories

  • Two Intel rivals positioned to dominate the chip industry, report says

    Intel is facing a "changing of the guard" in the chip industry as two competitors steal a page for its playbook, according to an analysis published by Bloomberg last week. After Intel Corp. (Nasdaq: INTC) reported earnings reflecting an "astonishingly bad" performance, two rivals, Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) and Samsung have proved themselves as better positioned to weather a current demand downturn, according to Bloomberg. TSMC in particular "has caught and passed Intel quicker than even the most optimistic analysts had predicted," the according to the report.

  • Jim Cramer Makes a Surprising Admission About Tesla

    The outspoken CNBC host and contributor makes his case when asked which automaker stock he'd rather own.

  • Bed Bath & Beyond announces plan to raise $1 billion, stock falls 24%

    Bed Bath & Beyond's (BBBY) stock sank 24% after the embattled retailer announced it will raise as much as $1.025 billion through an equity offering.

  • India's Adani crisis spills over into street protests as losses top $110 billion

    The crisis engulfing the Adani Group intensified on Monday as hundreds of members of India's opposition parties took to the streets to press for a probe into allegations by a U.S. short-seller against the conglomerate which triggered its market rout. Shares in billionaire Gautam Adani's companies have been in free-fall since a Jan. 24 critical report by Hindenberg Research, with group cumulative market losses now topping $110 billion, sparking fears of wider financial contagion. Opposition parties, who last week called for a parliamentary panel to investigate the saga and disrupted proceedings, have questioned Indian Prime Minister Narendra Modi's closeness with Adani.

  • Laid-off Silicon Valley workers are panic-selling their start-up shares as valuations plunge — here are 3 top tech stocks for 2023 that actually make money

    It's a tech-astrophe out there. But you have options.

  • Why Snap Stock Was Climbing Today

    Shares of Snap (NYSE: SNAP) were rallying on news that Texas would ban its state agencies from using TikTok, the popular short-form video app considered a close rival to Snapchat. Snap finished the day higher, gaining 9.7% on the news. In the latest sign that incremental pressure was building against TikTok, which is based in China, Texas Governor Greg Abbott announced a "statewide model security plan" to address vulnerabilities to TikTok and other software.

  • ‘Big Short’ hedge funder says he thinks we’re headed for a ‘run-of-the-mill’ recession—but the bigger ‘paradigm shift’ is really on his mind

    Steve Eisman says some market paradigms get deeply embedded in people’s minds. “They can’t even imagine, at times, that there could be anything else.”

  • Why Plug Power Stock Fell 5% Today

    Shares of hydrogen fuel cell company Plug Power (NASDAQ: PLUG) were down about 5.5% as of 1:30 p.m. ET on Monday, presumably responding to a report from Euronews that suggested the prospects for building a hydrogen economy may no longer be as bright as once thought. Citing data from non-governmental organization Global Witness, Euronews noted today that converting Europe's economy alone to run on hydrogen gas would cost 240 billion euros -- and double the cost of electricity for consumers. Over the past few years, predictions for the growth rate of the hydrogen economy have been ... optimistic, shall we say.

  • Tesla Stock Rallies 58% YTD, Top Analyst Says Don't Sell Yet

    Tesla has gained 91% since Jan. 6 bear-market lows, but this Tesla bull just hiked his stock price target.

  • Buying Nvidia Stock on the Dips: Here's the Level to Watch

    Nvidia stock has been trading incredibly well on the long side. Here's where to buy the dip next.

  • Best Stock to Buy: Palantir Stock vs. C3.ai Stock

    Growth stocks are in favor again to start 2023. Palantir (NYSE: PLTR) and C3.ai (NYSE: AI) are certainly interesting choices. This video will answer which growth stock is the best one to buy. *Stock prices used were the afternoon prices of Feb.

  • EV Startup Canoo Makes a Big Announcement

    Canoo , a young electric vehicle manufacturer, just made a big announcement to help pursue its efforts to supply delivery vehicles to WalMart and others. The company, which began testing vehicles late last year with WalMart, raised additional capital on Monday by selling new shares to institutional investors. The new shares were sold to investors at a discount in a direct offering and will net Canoo $52.5 million.

  • Pinterest (PINS) Tops Q4 Earnings Estimates

    Pinterest (PINS) delivered earnings and revenue surprises of 3.57% and 0.89%, respectively, for the quarter ended December 2022. Do the numbers hold clues to what lies ahead for the stock?

  • Tesla plans Cybertruck production to begin by end of 2023, Canoo fundraises in discount shares sale

    Yahoo Finance autos reporter Pras Subramanian joins the Live show to examine Tesla's schedule to start manufacturing on the Cybertruck, as well as EV maker Canoo's plans to fundraise $52.5 million in discounted shares sale.

  • Why C3.ai Stock Popped Again Today

    Shares of C3.ai (NYSE: AI), the artificial intelligence-based software-as-a-service company, were moving higher again as the stakes continued to build in artificial intelligence and investors continue to look to C3.ai as one of the few pure plays available in AI. Coming on the heels of news that ChatGPT's has reached 100 million users and it would charge $20 a month for a "plus" tier, Google said today that it was launching its own conversational search tool, named Bard. Bard isn't live, but Google said it will be made available in the coming weeks and is now being opened up to "trusted testers."

  • Two Wall Street Powerhouses Hit by the Fall of Billionaire Adani's Empire

    Indian billionaire Gautam Adani saw his net worth melt by tens of billions of dollars in a matter of days. Last September, Adani became by far the richest man in Asia and the second richest man in the world behind Elon Musk with a fortune estimated at $150 billion. This fortune is currently valued at $59 billion as of Feb. 4, according to Bloomberg Billionaires Index. It has melted a total of $91 billion in six months.

  • ‘I would not touch crypto in a million years’: Jim Cramer blasts 'dangerous' $4.3B bailout of crypto bank — here's how to prep for a collapse of crypto confidence

    The bailout by the Federal Home Loan Bank has critics questioning whether the government-backed enterprise has lost its way.

  • Down More Than 50%: These 2 ‘Strong Buy’ Stocks Still Look Cheap Despite This Year’s Rally

    It might be obvious to point out that an important part of the investing game is to find the stocks that are undervalued — that is, the companies with sound fundamentals that the market is presently not fully appreciating. Luckily for investors, after 2022’s widespread carnage, there are still plenty of names out there still at relatively depressed levels. In fact, even after the strong rallies seen in the year’s opening stretch, such was 2022’s merciless bear, there are scores of stocks out the

  • Occidental’s CEO Says Stock Buybacks Take Priority Over Oil Growth

    (Bloomberg) -- Occidental Petroleum Corp. may redeem Berkshire Hathaway Inc.’s preferred stock this year as the oil giant prioritizes share buybacks over production growth, said Chief Executive Officer Vicki Hollub. Most Read from BloombergQuake Toll Hits 4,000 in Turkey, Syria as Overseas Aid FlowsTurkey’s South Hit by a Second High-Magnitude EarthquakeDell to Cut About 6,650 Jobs, Battered by Plunging PC SalesUS Moves to Recover Chinese Balloon While Weighing RetaliationChina Moves From Contri

  • Transocean (RIG) Wins 910-Day Drilling Deal Set to Start in Q3

    Transocean (RIG) lands 910-day contract for Dhirubhai Deepwater KG2 in Brazil.