Webster Financial Corporation Announces Quarterly Dividend of $0.40 (NYSE:WBS)

Key Points

• Webster Financial Corporation has announced a quarterly dividend of $0.40 per share, which is set to be paid on August 21st to stockholders of record as of August 11th, representing an annualized dividend of $1.60 and a dividend yield of 2.75%.
• The company has a payout ratio of 24.6%, indicating that its dividend is well-covered by earnings, with expectations of future earnings at $6.68 per share.
• Webster Financial's stock shows positive analyst sentiment, with multiple firms raising their price targets, indicating a consensus rating of "Moderate Buy" with a target price of $66.77.

Webster Financial Corporation (NYSE:WBS - Get Free Report) announced a quarterly dividend on Wednesday, July 30th, RTT News reports. Shareholders of record on Monday, August 11th will be paid a dividend of 0.40 per share by the financial services provider on Thursday, August 21st. This represents a c) annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, August 11th.

Webster Financial has a dividend payout ratio of 24.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Webster Financial to earn $6.68 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 24.0%.

Webster Financial Stock Performance

Shares of NYSE:WBS traded down $1.69 during trading hours on Friday, hitting $55.96. The stock had a trading volume of 1,447,858 shares, compared to its average volume of 1,470,211. The stock's fifty day simple moving average is $55.75 and its 200 day simple moving average is $53.52. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.85 and a current ratio of 0.86. The firm has a market capitalization of $9.41 billion, a price-to-earnings ratio of 11.35, a PEG ratio of 0.54 and a beta of 1.04. Webster Financial has a 1-year low of $39.43 and a 1-year high of $63.99.

Webster Financial (NYSE:WBS - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The financial services provider reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.43 by $0.09. The business had revenue of $715.80 million during the quarter, compared to analysts' expectations of $716.59 million. Webster Financial had a net margin of 20.06% and a return on equity of 10.84%. The business's revenue was up 16.5% on a year-over-year basis. During the same period last year, the firm posted $1.26 earnings per share. Sell-side analysts anticipate that Webster Financial will post 5.88 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

WBS has been the subject of several research analyst reports. Truist Financial restated a "buy" rating and issued a $67.00 price target (up previously from $61.00) on shares of Webster Financial in a research report on Friday, July 11th. Wells Fargo & Company raised their target price on shares of Webster Financial from $70.00 to $75.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Barclays raised their target price on shares of Webster Financial from $72.00 to $77.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Seaport Res Ptn lowered shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 25th. Finally, UBS Group reiterated a "buy" rating and set a $69.00 target price on shares of Webster Financial in a research report on Wednesday, July 9th. Four analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $66.77.

Webster Financial Company Profile

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking.