OFG Bancorp (NYSE:OFG) Declares Quarterly Dividend of $0.40

Key Points

• OFG Bancorp raised its quarterly dividend 14.3% to $0.40 per share, payable January 15 to shareholders of record December 31. The annualized dividend is $1.60, representing a 3.1% yield.
• The dividend appears well covered, with a current payout ratio of 31.5%; analysts expect $5.32 in next-year EPS, implying a projected payout ratio of 26.3%.
• OFG’s latest earnings exceeded expectations, with quarterly EPS of $1.33 versus the $1.23 consensus estimate. Analysts maintain a consensus “Hold” rating and a $56.50 price target.

OFG Bancorp (NYSE:OFG - Get Free Report) announced a quarterly dividend on Monday, November 2nd. Shareholders of record on Thursday, December 31st will be given a dividend of $0.40 per share by the bank on Friday, January 15th. This represents a $1.60 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Thursday, December 31st. This is a 14.3% increase from OFG Bancorp's previous quarterly dividend of $0.35.

OFG Bancorp has raised its dividend by an average of 0.3% annually over the last three years and has raised its dividend every year for the last 5 years. OFG Bancorp has a dividend payout ratio of 31.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect OFG Bancorp to earn $5.32 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 26.3%.

OFG Bancorp Stock Performance

Shares of OFG opened at $50.96 on Tuesday. OFG Bancorp has a 1 year low of $35.71 and a 1 year high of $54.47. The stock has a market capitalization of $2.15 billion, a PE ratio of 9.71 and a beta of 0.73. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.88 and a current ratio of 0.86. The stock has a 50-day simple moving average of $51.69 and a 200-day simple moving average of $46.78.

OFG Bancorp (NYSE:OFG - Get Free Report) last released its earnings results on Wednesday, October 21st. The bank reported $1.33 earnings per share for the quarter, topping analysts' consensus estimates of $1.23 by $0.10. OFG Bancorp had a net margin of 24.64% and a return on equity of 16.38%. The firm had revenue of $186.21 million for the quarter, compared to analyst estimates of $187.11 million. On average, analysts predict that OFG Bancorp will post 5.32 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Truist Financial increased their price objective on shares of OFG Bancorp from $55.00 to $58.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Piper Sandler set a $56.00 price objective on shares of OFG Bancorp in a research report on Wednesday, July 22nd. Zacks Research downgraded shares of OFG Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 21st. Wells Fargo & Company increased their target price on OFG Bancorp from $49.00 to $55.00 and gave the company an "equal weight" rating in a report on Monday, August 10th. Finally, Weiss Ratings upgraded OFG Bancorp from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, October 22nd. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $56.50.

OFG Bancorp Company Profile

OFG Bancorp is a financial holding company headquartered in San Juan, Puerto Rico. Through its principal subsidiary, Oriental Bank, the company provides banking and financial services to individuals, businesses and institutions in Puerto Rico and the U.S. Virgin Islands.

Oriental Bank offers deposit accounts, consumer and commercial loans, residential mortgage lending, auto financing, credit cards and other retail banking products. The company also provides wealth management, trust, investment and insurance-related services through its affiliated businesses.

Founded in 1964, OFG Bancorp has expanded its presence in Puerto Rico through organic growth and acquisitions, including the purchase of Scotiabank's Puerto Rico operations in 2019.

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