Cullen/Frost Bankers, Inc. (NYSE:CFR) Raises Dividend to $1.03 Per Share

Key Points

• Cullen/Frost Bankers raised its quarterly dividend to $1.03 (a 3.0% increase), payable June 15 to shareholders of record May 29, implying a yield of about 2.8%.
• The bank has increased its dividend every year for 32 years, and the payout appears sustainable with a current payout ratio of 42.1% and an expected future payout ratio of roughly 37.7% based on analyst EPS forecasts.
• Cullen/Frost beat quarterly estimates with $2.65 EPS (vs. $2.46 expected), its stock traded up about 1.7% to $145.16, and the company carries a P/E of ~14.6 and market cap near $9.1 billion.

Cullen/Frost Bankers, Inc. (NYSE:CFR - Get Free Report) announced a quarterly dividend on Thursday, April 30th. Investors of record on Friday, May 29th will be paid a dividend of 1.03 per share by the bank on Monday, June 15th. This represents a c) annualized dividend and a yield of 2.8%. The ex-dividend date is Friday, May 29th. This is a 3.0% increase from Cullen/Frost Bankers's previous quarterly dividend of $1.00.

Cullen/Frost Bankers has increased its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 32 years. Cullen/Frost Bankers has a payout ratio of 42.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cullen/Frost Bankers to earn $10.60 per share next year, which means the company should continue to be able to cover its $4.00 annual dividend with an expected future payout ratio of 37.7%.

Cullen/Frost Bankers Trading Up 1.7%

Cullen/Frost Bankers stock traded up $2.36 during mid-day trading on Thursday, hitting $145.16. 780,238 shares of the company's stock were exchanged, compared to its average volume of 545,136. The firm has a market capitalization of $9.14 billion, a P/E ratio of 14.63, a PEG ratio of 3.97 and a beta of 0.61. Cullen/Frost Bankers has a fifty-two week low of $116.47 and a fifty-two week high of $148.97. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 0.05. The company's 50 day simple moving average is $138.95 and its 200-day simple moving average is $133.49.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The bank reported $2.65 EPS for the quarter, topping the consensus estimate of $2.46 by $0.19. Cullen/Frost Bankers had a return on equity of 15.49% and a net margin of 22.21%.During the same quarter in the prior year, the firm posted $2.30 EPS. On average, equities analysts anticipate that Cullen/Frost Bankers will post 10.21 earnings per share for the current year.

Insider Transactions at Cullen/Frost Bankers

In other Cullen/Frost Bankers news, EVP Bobby Berman sold 1,000 shares of the stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $137.07, for a total transaction of $137,070.00. Following the completion of the transaction, the executive vice president owned 28,406 shares in the company, valued at approximately $3,893,610.42. This represents a 3.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 1.14% of the company's stock.

Hedge Funds Weigh In On Cullen/Frost Bankers

A number of large investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP increased its holdings in Cullen/Frost Bankers by 9.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,293,964 shares of the bank's stock worth $163,862,000 after purchasing an additional 106,558 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Cullen/Frost Bankers by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 1,224,265 shares of the bank's stock valued at $155,059,000 after acquiring an additional 10,246 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Cullen/Frost Bankers by 8.5% in the 3rd quarter. Bank of America Corp DE now owns 1,129,673 shares of the bank's stock valued at $143,209,000 after acquiring an additional 88,080 shares in the last quarter. Northern Trust Corp grew its holdings in shares of Cullen/Frost Bankers by 2.3% in the 3rd quarter. Northern Trust Corp now owns 965,821 shares of the bank's stock valued at $122,437,000 after acquiring an additional 21,793 shares in the last quarter. Finally, Impax Asset Management Group plc grew its holdings in shares of Cullen/Frost Bankers by 11.9% in the 3rd quarter. Impax Asset Management Group plc now owns 920,833 shares of the bank's stock valued at $116,734,000 after acquiring an additional 97,955 shares in the last quarter. Institutional investors own 86.90% of the company's stock.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc is the holding company for Frost Bank, a Texas-chartered financial institution whose origins date back to 1868 in San Antonio. As one of the oldest banking organizations in the state, it offers a broad range of services to individuals, small and large businesses, and institutional clients. Core banking activities include commercial lending, deposit services, cash management and trade finance, while consumer products cover residential mortgages, personal lines of credit and home equity loans.

Beyond traditional banking, the company provides comprehensive treasury and equipment leasing solutions tailored to support working capital and capital expenditure requirements.

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