Prosperity Bancshares, Inc. (NYSE:PB) Plans Quarterly Dividend of $0.60

Key Points

• Prosperity Bancshares announced a quarterly dividend of $0.60 per share, payable on October 1 to shareholders of record as of September 15. The dividend implies an annualized yield of about 3.3%.
• The bank has raised its dividend for 27 straight years, and its payout ratio of 37.3% suggests the dividend is well covered by earnings. Analysts expect continued coverage next year as well.
• In its latest earnings report, Prosperity Bancshares beat expectations with EPS of $1.50 versus $1.41 expected, while revenue also topped estimates. Analysts currently have a Hold consensus on the stock with an average price target of $76.36.

Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) announced a quarterly dividend on Tuesday, July 21st. Investors of record on Tuesday, September 15th will be given a dividend of 0.60 per share by the bank on Thursday, October 1st. This represents a c) annualized dividend and a yield of 3.3%. The ex-dividend date is Tuesday, September 15th.

Prosperity Bancshares has raised its dividend by an average of 0.0%per year over the last three years and has raised its dividend annually for the last 27 consecutive years. Prosperity Bancshares has a dividend payout ratio of 37.3% meaning its dividend is sufficiently covered by earnings. Analysts expect Prosperity Bancshares to earn $7.13 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 33.7%.

Prosperity Bancshares Trading Down 0.1%

NYSE:PB opened at $73.07 on Thursday. The stock has a fifty day simple moving average of $70.87 and a 200 day simple moving average of $70.14. The firm has a market capitalization of $7.37 billion, a price-to-earnings ratio of 13.24, a price-to-earnings-growth ratio of 1.17 and a beta of 0.63. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.01. Prosperity Bancshares has a 1-year low of $61.06 and a 1-year high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its earnings results on Wednesday, April 29th. The bank reported $1.50 earnings per share for the quarter, beating analysts' consensus estimates of $1.41 by $0.09. The company had revenue of $367.62 million for the quarter, compared to the consensus estimate of $358.60 million. Prosperity Bancshares had a return on equity of 7.20% and a net margin of 29.50%.The firm's quarterly revenue was up 19.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.37 EPS. Sell-side analysts forecast that Prosperity Bancshares will post 6.25 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Cantor Fitzgerald reiterated an "overweight" rating and set a $80.00 target price on shares of Prosperity Bancshares in a research note on Tuesday, June 23rd. Morgan Stanley reaffirmed an "equal weight" rating and set a $80.00 price objective (down from $85.00) on shares of Prosperity Bancshares in a research note on Monday, July 6th. TD Cowen boosted their target price on shares of Prosperity Bancshares from $77.00 to $79.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Citigroup boosted their price objective on Prosperity Bancshares from $74.00 to $75.00 and gave the stock a "neutral" rating in a report on Thursday, June 25th. Finally, Weiss Ratings upgraded Prosperity Bancshares from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, July 1st. Five investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $76.36.

About Prosperity Bancshares

Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.

Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.

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