First Citizens BancShares, Inc. (NASDAQ:FCNCA) to Issue Dividend Increase - $2.25 Per Share

Key Points

• First Citizens BancShares raised its quarterly dividend 7.1% to $2.25 per share, payable December 15 to shareholders of record November 30. The new annualized dividend is $9.00, yielding approximately 0.4%.
• The bank has increased its dividend for eight consecutive years, while its low 4.5% payout ratio indicates substantial earnings coverage and room to maintain future payments.
• First Citizens reported quarterly earnings of $55.37 per share, beating analysts’ $46.18 estimate, with revenue of $2.27 billion versus the $2.26 billion consensus.

First Citizens BancShares, Inc. (NASDAQ:FCNCA - Get Free Report) announced a quarterly dividend on Friday, October 23rd. Stockholders of record on Monday, November 30th will be paid a dividend of $2.25 per share by the bank on Tuesday, December 15th. This represents a $9.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Monday, November 30th. This is a 7.1% increase from First Citizens BancShares's previous quarterly dividend of $2.10.

First Citizens BancShares has increased its dividend by an average of 0.4% annually over the last three years and has increased its dividend annually for the last 8 consecutive years. First Citizens BancShares has a dividend payout ratio of 4.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect First Citizens BancShares to earn $202.36 per share next year, which means the company should continue to be able to cover its $8.40 annual dividend with an expected future payout ratio of 4.2%.

First Citizens BancShares Price Performance

Shares of First Citizens BancShares stock traded up $179.08 during trading on Friday, hitting $2,375.84. 298,540 shares of the company were exchanged, compared to its average volume of 82,891. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.59. The stock has a market capitalization of $26.82 billion, a price-to-earnings ratio of 12.70, a P/E/G ratio of 1.59 and a beta of 0.58. First Citizens BancShares has a fifty-two week low of $1,735.03 and a fifty-two week high of $2,429.96. The firm has a 50 day moving average price of $2,132.90 and a 200 day moving average price of $2,085.63.

First Citizens BancShares (NASDAQ:FCNCA - Get Free Report) last announced its earnings results on Friday, October 23rd. The bank reported $55.37 earnings per share for the quarter, beating the consensus estimate of $46.18 by $9.19. The firm had revenue of $2.27 billion during the quarter, compared to the consensus estimate of $2.26 billion. First Citizens BancShares had a net margin of 16.28% and a return on equity of 12.07%. On average, equities analysts expect that First Citizens BancShares will post 193.20 earnings per share for the current fiscal year.

About First Citizens BancShares

First Citizens BancShares, Inc is a bank holding company headquartered in Raleigh, North Carolina. Its principal subsidiary, First-Citizens Bank & Trust Company, provides banking and financial services to individuals, businesses, and institutions through a network of branches and digital banking channels.

The bank offers deposit accounts, consumer and residential lending, commercial and industrial loans, commercial real estate financing, equipment finance, treasury management, and payment services.

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