Associated Banc-Corp to Issue Quarterly Dividend of $0.24 (NYSE:ASB)

Key Points

• Associated Banc-Corp declared a quarterly dividend of $0.24 per share, with an ex-dividend and record date of June 1 and payment on June 15, implying a 3.4% yield and $0.96 annualized payout.
• The dividend appears well-covered and sustainable: the bank has raised its payout for 13 consecutive years and currently has a payout ratio of ~35%, with analysts projecting a lower future payout ratio around 29.8% based on expected EPS.
• Recent results showed a slight beat with $0.70 EPS vs. $0.69 expected and $387.2M revenue, while analysts hold a mixed view (six Buys, six Holds) with an average target of about $30.30 and the stock trading near its 12‑month high/low of $29.51/$21.61.

Associated Banc-Corp (NYSE:ASB - Get Free Report) announced a quarterly dividend on Tuesday, April 28th. Stockholders of record on Monday, June 1st will be paid a dividend of 0.24 per share by the bank on Monday, June 15th. This represents a c) annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend is Monday, June 1st.

Associated Banc has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 13 years. Associated Banc has a payout ratio of 35.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Associated Banc to earn $3.22 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 29.8%.

Associated Banc Price Performance

Associated Banc stock opened at $28.09 on Wednesday. Associated Banc has a 12-month low of $21.61 and a 12-month high of $29.51. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 0.84. The firm has a 50-day moving average price of $26.44 and a 200-day moving average price of $26.34. The firm has a market capitalization of $4.64 billion, a PE ratio of 9.77, a price-to-earnings-growth ratio of 1.44 and a beta of 0.77.

Associated Banc (NYSE:ASB - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The bank reported $0.70 EPS for the quarter, beating the consensus estimate of $0.69 by $0.01. The company had revenue of $387.21 million for the quarter, compared to the consensus estimate of $384.20 million. Associated Banc had a net margin of 19.88% and a return on equity of 10.46%. During the same period in the prior year, the firm posted $0.59 EPS. As a group, equities research analysts forecast that Associated Banc will post 2.89 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. Robert W. Baird raised their price target on Associated Banc from $29.00 to $30.00 and gave the stock a "neutral" rating in a research note on Friday, April 24th. Barclays upgraded Associated Banc from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $30.00 to $33.00 in a research report on Tuesday, April 7th. Weiss Ratings upgraded shares of Associated Banc from a "hold (c+)" rating to a "buy (b)" rating in a report on Tuesday, February 17th. Piper Sandler lifted their target price on Associated Banc from $29.00 to $30.00 and gave the company a "neutral" rating in a research report on Friday. Finally, Zacks Research downgraded Associated Banc from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 6th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $30.30.

Associated Banc Company Profile

Associated Banc-Corp, through its primary subsidiary Associated Bank, N.A., is a regional financial services company headquartered in Green Bay, Wisconsin. The bank operates more than 200 branches across the Midwest, offering community-focused banking solutions for individuals, small businesses and commercial clients. Its emphasis on personalized service and regional decision-making supports long-standing customer relationships.

On the consumer side, Associated Bank provides checking and savings accounts, residential mortgages, home equity lines of credit, auto financing and credit card products.

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