M&T Bank Corporation MTB announced a sequential increase in its quarterly dividend payment. The company declared a quarterly cash dividend per share of $1.35, reflecting a 4% increase from its previous payout. The dividend will be paid out on Jun 28 to shareholders of record as of Jun 3.
The bank increased its dividend three times during the last five years. Prior to the recent hike, MTB raised its dividend by 8.3% to $1.30 per share in February 2023.
Considering MTB’s closing price of $153.38 on May 21, its dividend yield is currently pegged at 3.52%.
Its payout ratio is 35% of earnings. The company retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Apart from regular dividend payouts, MTB has a share repurchase program in place. In July 2022, the board of directors authorized a new repurchase plan of $3 billion of shares of common stock. It bought back 3.8 million shares in 2023 for $600 million. It did not repurchase any shares in first-quarter 2024. As of Mar 31, 2024, it had $1.2 billion of remaining authorization. Currently, management has paused the share repurchase activity till the uncertainty regarding the new capital rule persists.
MTB maintains a decent liquidity position. As of Mar 31, 2024, the company had total cash and due from banks and interest-bearing deposits at banks of $33.83 billion, while total debt was $16.24 billion. Given the decent liquidity position, the company is expected to sustain its capital distribution activities. Through this, MTB will keep enhancing shareholders’ value.
In the past six months, MTB’s shares have gained 22.6% compared with the industry’s growth of 29.3%.
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Currently, M&T Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Companies Taking Similar Steps:
This week, Nicolet Bankshares, Inc. NIC announced a quarterly cash dividend of 28 cents per share. This reflects a 12% hike from the prior payout. The dividend will be paid out on Jun 14, 2024, to shareholders of record as of Jun 3.
The company increased its dividend payout for the first time since its inception. It announced its first quarterly cash dividend in May 2023. Currently, NIC’s payout ratio is 15% of earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering decent returns to its shareholders.
In early May, Apollo Global Management, Inc. APO announced a sequential increase in its quarterly dividend. The company declared a quarterly cash dividend of 46 cents per share, marking a rise of 7.6% from the prior payout. The dividend will be paid out on May 31 to shareholders of record as of May 17.
The company has increased its dividend eight times during the last five years. Prior to the recent hike, APO increased its dividend by 7.5% to 43 cents in February 2023.
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M&T Bank Corporation (MTB) : Free Stock Analysis Report
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