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

Key Points

• Itau Unibanco declared a monthly dividend of $0.0033 per share, with a record date of May 5 and payment on June 8, implying an annualized yield of about 0.5%.
• The dividend is modest but well covered—Itau has averaged a 0.2% annual dividend increase over three years and carries a low payout ratio (~3.7%), with analysts projecting earnings that would lower the payout to about 3.1% next year.
• The bank recently missed quarterly estimates, reporting $0.17 EPS vs. $0.20 expected and $8.62B revenue vs. $8.98B expected, though it still shows strong profitability metrics (net margin ~20.6%, ROE ~20.8%) and a market cap near $95.6B (P/E ~12.3).

Itau Unibanco Holding S.A. (NYSE:ITUB - Get Free Report) declared a monthly dividend on Friday, December 12th. Shareholders of record on Tuesday, May 5th will be paid a dividend of 0.0033 per share by the bank on Monday, June 8th. This represents a c) dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, May 5th.

Itau Unibanco has increased its dividend payment by an average of 0.2%per year over the last three years. Itau Unibanco has a payout ratio of 3.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Itau Unibanco to earn $0.98 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 3.1%.

Itau Unibanco Price Performance

Shares of ITUB stock opened at $8.64 on Friday. 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 company has a market capitalization of $95.64 billion, a P/E ratio of 12.27, a P/E/G ratio of 0.93 and a beta of 0.63. The company's 50-day simple moving average is $8.63 and its two-hundred day simple moving average is $7.96. Itau Unibanco has a one year low of $5.87 and a one year high of $9.60.

Itau Unibanco (NYSE:ITUB - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The bank reported $0.17 earnings per share (EPS) 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 for the quarter, compared to the consensus estimate of $8.98 billion. As a group, equities analysts anticipate that Itau Unibanco will post 0.89 EPS for the current year.

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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