Popular, Inc. (NASDAQ:BPOP) Declares Quarterly Dividend of $0.90

Key Points

• Popular raised its quarterly dividend 20% to $0.90 per share, payable October 1 to shareholders of record September 10. The dividend implies a 2.1% yield and marks six consecutive years of annual increases.
• The dividend appears well covered, with a 24.3% current payout ratio; analysts expect next year’s earnings to support an estimated 17.5% payout ratio.
• Popular recently reported adjusted earnings of $4.35 per share, beating estimates of $3.72, while analysts maintain a consensus “Buy” rating and an average price target of $186.92.

Popular, Inc. (NASDAQ:BPOP - Get Free Report) announced a quarterly dividend on Thursday, August 20th. Shareholders of record on Thursday, September 10th will be given a dividend of 0.90 per share by the bank on Thursday, October 1st. This represents a c) dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Thursday, September 10th. This is a 20.0% increase from Popular's previous quarterly dividend of $0.75.

Popular has raised its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 6 consecutive years. Popular has a dividend payout ratio of 24.3% meaning its dividend is sufficiently covered by earnings. Analysts expect Popular to earn $17.13 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 17.5%.

Popular Stock Performance

NASDAQ:BPOP opened at $168.22 on Friday. The firm's fifty day moving average is $169.82 and its 200-day moving average is $152.40. Popular has a 52 week low of $108.74 and a 52 week high of $179.24. The firm has a market cap of $10.73 billion, a P/E ratio of 11.37, a P/E/G ratio of 0.65 and a beta of 0.61.

Popular (NASDAQ:BPOP - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The bank reported $4.35 EPS for the quarter, topping the consensus estimate of $3.72 by $0.63. Popular had a net margin of 21.37% and a return on equity of 15.34%. The company had revenue of $846.92 million during the quarter, compared to the consensus estimate of $878.41 million. During the same quarter last year, the firm posted $3.09 EPS. As a group, sell-side analysts anticipate that Popular will post 15.72 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages have commented on BPOP. Citigroup raised their price objective on Popular from $178.00 to $188.00 and gave the company a "buy" rating in a research note on Thursday, June 25th. Benchmark boosted their price target on shares of Popular from $201.00 to $214.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Royal Bank Of Canada upped their price objective on shares of Popular from $163.00 to $181.00 and gave the stock an "outperform" rating in a report on Friday, July 24th. UBS Group raised their price objective on shares of Popular from $160.00 to $170.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Finally, Truist Financial lifted their price objective on shares of Popular from $192.00 to $197.00 and gave the company a "buy" rating in a report on Friday, July 24th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Popular has an average rating of "Buy" and a consensus target price of $186.92.

Popular Company Profile

Popular, Inc, headquartered in San Juan, Puerto Rico, is a financial holding company and a leading provider of banking services in the United States mainland and Puerto Rico. Through its primary subsidiaries—Banco Popular de Puerto Rico and Popular Bank—the company delivers comprehensive commercial and consumer banking solutions. It offers deposit products, lending facilities, cash management services and payment-processing solutions designed for individuals, small businesses and large corporations.

The company's product suite encompasses checking and savings accounts, certificates of deposit, residential and commercial mortgage loans, business lines of credit and credit cards.

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