U.S. Bancorp (NYSE:USB) to Issue Dividend Increase - $0.52 Per Share

Key Points

• U.S. Bancorp has declared a quarterly dividend of $0.52 per share, representing a 4.0% increase from the previous dividend of $0.50.
• The company's payout ratio stands at 41.8%, indicating adequate coverage of the dividend by earnings, with projected earnings of $4.82 per share for the next year.
• U.S. Bancorp's stock increased by 1.5% on the day of the announcement, hitting a new price of $49.36, while trading volume significantly surpassed its average.

U.S. Bancorp (NYSE:USB - Get Free Report) declared a quarterly dividend on Tuesday, September 9th, RTT News reports. Investors of record on Tuesday, September 30th will be given a dividend of 0.52 per share by the financial services provider on Wednesday, October 15th. This represents a c) annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Tuesday, September 30th. This is a 4.0% increase from U.S. Bancorp's previous quarterly dividend of $0.50.

U.S. Bancorp has a payout ratio of 41.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect U.S. Bancorp to earn $4.82 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 41.5%.

U.S. Bancorp Stock Down 0.4%

USB stock traded down $0.19 during trading on Friday, reaching $49.13. The stock had a trading volume of 8,103,162 shares, compared to its average volume of 8,361,248. U.S. Bancorp has a 1-year low of $35.18 and a 1-year high of $53.98. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.16. The company has a market capitalization of $76.46 billion, a P/E ratio of 11.75, a PEG ratio of 1.54 and a beta of 1.05. The firm has a fifty day moving average price of $46.85 and a 200 day moving average price of $43.98.

U.S. Bancorp (NYSE:USB - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The financial services provider reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $1.07 by $0.04. The firm had revenue of $7.06 billion for the quarter, compared to analyst estimates of $7.07 billion. U.S. Bancorp had a net margin of 16.30% and a return on equity of 13.08%. The firm's revenue was up 2.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.98 EPS. U.S. Bancorp has set its FY 2025 guidance at EPS. On average, equities analysts anticipate that U.S. Bancorp will post 4.38 earnings per share for the current year.

Insider Activity

In other news, EVP Souheil Badran sold 23,727 shares of the firm's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $46.34, for a total value of $1,099,509.18. Following the completion of the sale, the executive vice president owned 70,346 shares of the company's stock, valued at $3,259,833.64. This trade represents a 25.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 0.23% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of USB. Wesbanco Bank Inc. grew its position in U.S. Bancorp by 31.6% in the 1st quarter. Wesbanco Bank Inc. now owns 325,056 shares of the financial services provider's stock worth $13,724,000 after purchasing an additional 78,146 shares during the last quarter. Crestwood Advisors Group LLC raised its stake in shares of U.S. Bancorp by 10.6% in the first quarter. Crestwood Advisors Group LLC now owns 6,784 shares of the financial services provider's stock worth $286,000 after acquiring an additional 649 shares during the last quarter. Ally Financial Inc. raised its stake in shares of U.S. Bancorp by 12.3% in the first quarter. Ally Financial Inc. now owns 91,000 shares of the financial services provider's stock worth $3,842,000 after acquiring an additional 10,000 shares during the last quarter. United Community Bank raised its stake in shares of U.S. Bancorp by 21.8% in the first quarter. United Community Bank now owns 49,066 shares of the financial services provider's stock worth $2,072,000 after acquiring an additional 8,796 shares during the last quarter. Finally, Jump Financial LLC grew its position in shares of U.S. Bancorp by 1,952.5% during the 1st quarter. Jump Financial LLC now owns 840,308 shares of the financial services provider's stock worth $35,478,000 after buying an additional 799,368 shares during the period. Institutional investors and hedge funds own 77.60% of the company's stock.

U.S. Bancorp Company Profile

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments.