Itau Unibanco Holding S.A. Plans Monthly Dividend of $0.00 (NYSE:ITUB)

Key Points

• Monthly dividend declared of $0.0033 per share (record date April 2, payable May 11), implying an annualized yield of about 0.5% and a low payout ratio (~3.7%) that suggests the dividend is well covered by earnings.
• The bank missed Q4 estimates—EPS $0.17 vs. $0.20 expected and revenue $8.62B vs. $8.98B—yet showed strong profitability (net margin 20.64%, ROE 20.83%) and trades at a relatively low P/E of 11.19.

Itau Unibanco Holding S.A. (NYSE:ITUB - Get Free Report) declared a monthly dividend on Friday, December 12th. Shareholders of record on Thursday, April 2nd will be given a dividend of 0.0033 per share by the bank on Monday, May 11th. This represents a c) annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, April 2nd.

Itau Unibanco has raised its dividend by an average of 0.2%annually over the last three years. Itau Unibanco has a payout ratio of 3.7% indicating that its dividend is sufficiently covered by earnings. Analysts expect Itau Unibanco to earn $0.87 per share next year, which means the company should continue to be able to cover its $0.03 annual dividend with an expected future payout ratio of 3.4%.

Itau Unibanco Stock Up 0.1%

Shares of ITUB opened at $7.88 on Tuesday. The company has a debt-to-equity ratio of 2.61, a current ratio of 1.79 and a quick ratio of 1.58. The stock has a market capitalization of $87.23 billion, a price-to-earnings ratio of 11.19, a price-to-earnings-growth ratio of 0.86 and a beta of 0.63. Itau Unibanco has a 1 year low of $4.97 and a 1 year high of $9.60. The business's 50 day simple moving average is $8.60 and its 200-day simple moving average is $7.66.

Itau Unibanco (NYSE:ITUB - Get Free Report) last posted its earnings results on Thursday, February 5th. The bank reported $0.17 earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.03). Itau Unibanco had a net margin of 20.64% and a return on equity of 20.83%. The business had revenue of $8.62 billion during the quarter, compared to analysts' expectations of $8.98 billion. As a group, equities analysts expect that Itau Unibanco will post 0.8 earnings per share for the current fiscal year.

Institutional Trading of Itau Unibanco

A number of institutional investors have recently bought and sold shares of ITUB. Kestra Advisory Services LLC bought a new position in Itau Unibanco during the fourth quarter valued at $31,000. MAI Capital Management purchased a new position in shares of Itau Unibanco during the 2nd quarter worth about $41,000. EverSource Wealth Advisors LLC grew its holdings in Itau Unibanco by 332.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 6,966 shares of the bank's stock valued at $47,000 after purchasing an additional 5,355 shares during the last quarter. Farther Finance Advisors LLC raised its position in Itau Unibanco by 40.1% in the 4th quarter. Farther Finance Advisors LLC now owns 6,642 shares of the bank's stock worth $48,000 after purchasing an additional 1,901 shares during the period. Finally, Community Bank N.A. purchased a new stake in Itau Unibanco in the 3rd quarter worth about $57,000.

About Itau Unibanco

Itaú Unibanco SA NYSE: ITUB is a Brazilian banking and financial services conglomerate headquartered in São Paulo. The company was formed by the merger of Banco Itaú and Unibanco in 2008 and is one of the largest private-sector banks in Brazil and among the leading banks in Latin America. Itaú Unibanco is publicly listed in Brazil and maintains an international listing on the New York Stock Exchange.

The bank offers a full range of financial products and services across retail, commercial and wholesale banking.

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