Fifth Third Bancorp (NASDAQ: FITB) rewards shareholders by increasing its quarterly dividend. The company declared a cash dividend of 37 cents per share for third quarter 2024.
This reflects a 6% hike from the prior payout. The dividend will be paid out on Oct. 15, 2024, to shareholders of record as of Sep. 30, 2024.
Before the latest hike, FITB increased its dividend by 6.1% to 35 cents per share in September 2023. The company hiked its dividend five times in the past five years, with an annualized dividend growth of 8.6%.
FITB's current payout ratio is 40% of its earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering decent returns to shareholders.
Other finance stocks like U.S. Bancorp (NYSE: USB) and Northrim BanCorp, Inc. (NASDAQ: NRIM) also rewarded their investors with an increase in dividends.
This month, USB declared a regular quarterly dividend of 50 cents per common share, marking an increase of 2% from the prior payouts. In August, NRIM hiked its dividends by 1.6%, from their prior payout of 61 cents.
Fifth Third's Share Repurchase Plan
Apart from regular quarterly dividend payouts, FITB has a share buyback program in place.
On July 22, 2024, the company initiated an accelerated share repurchase agreement with a counterparty, through which it paid $200 million on July 23 to repurchase ...
