Popular (BPOP) Declares a 12.7% Hike in Its Quarterly Dividend
Popular, Inc.’s BPOP board of directors has approved a sequential hike in its quarterly cash dividend.The company declared a quarterly cash dividend of 62 cents per share, reflecting a rise of 12.7% from the prior payout. The dividend will be paid out on Jan 2, 2024, to shareholders on record as of Dec 7, 2023.
Prior to this, Popular hiked its dividend by 22.2% to 55 cents per share in Feb 2022. We believe that such disbursements highlight its operational strength and commitment toward enhancing shareholders’ wealth.
Considering the last day’s closing price of $72.35, Popular’s current dividend yield is 3.43%. Along with attracting investors, it represents a steady income stream. Also, the yield is significantly impressive compared with the industry’s average of 2.95%.
Investors are always on the lookout for companies with a track record of consistent and incremental dividend payments to bet their money on. While this favorable development makes BPOP stock impressive to investors, let’s check whether it is worth investing to earn this dividend income. Deeper research into the bank’s financial performance and fundamentals will help understand the risks and rewards.
BPOP’s operations are likely to lend support. Its revenues witnessed a compound annual growth rate of 6.4% over the last four years (ended 2022). Given a decent balance sheet position, the company is expected to expand into lucrative businesses. These efforts are likely to continue supporting the top line. Though BPOP’s 2023 revenues are projected to decline by 9.3%, the same is expected to rise 7.2% in 2024.
Further, Popular witnessed earnings growth of 25.9% in the past three to five years, higher than the industry’s average of 9.4%. Though earnings are suggested to decline 47.6% this year, the same is forecast to bounce back and grow 8.5% in 2024.
Shares of this Zacks Rank #3 (Hold) bank have rallied 23.1% over the past six months, outperforming the industry’s 11.8% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Steps
Bank OZK OZK announced a hike in its quarterly dividend. It declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend was paid out on Oct 20 to shareholders of record as of Oct 30. This represents the 53rd consecutive quarter of a dividend hike.
Prior to the recent hike, OZK raised its dividend by 2.8% to 36 cents per share in July 2023. Also, the bank has a five-year annualized dividend growth of 10.6%.
United Bankshares, Inc. UBSI announced a rise in its quarterly dividend for the 50th consecutive year. It declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend will be paid out on Jan 2, 2024 to shareholders of record as of Dec 8.
Richard M. Adams, Jr., UBSI’s chief executive officer, stated, "Fifty years of dividend growth is a testament to our proven track record as a high performing company with a low risk profile".
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Popular, Inc. (BPOP) : Free Stock Analysis Report
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