Atlantic Union Bankshares Corporation Declares Quarterly Common Stock Dividend and Preferred Stock Dividend

Rhea-AI Summary

Atlantic Union Bankshares Corporation has declared a quarterly dividend of $0.32 per share of common stock, marking a 7% increase from the first quarter of 2023. The dividend yield is approximately 3.6%, with a common stock closing price of $35.22 on January 25, 2024. Additionally, a quarterly dividend has been declared on the outstanding shares of the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A.

Insights

Financial Analyst

The declaration of a quarterly dividend by Atlantic Union Bankshares Corporation represents a continuation of the company's policy to return value to shareholders. The maintained dividend rate of $0.32 per share of common stock is indicative of the company's financial stability and confidence in its earnings. With a dividend yield of approximately 3.6% based on the recent closing price, this positions the stock as a potentially attractive option for income-focused investors, particularly in a market environment where yield may be challenging to find.

An important aspect to consider is the dividend payout ratio, which is the proportion of earnings paid out as dividends to shareholders. Although this figure is not provided, it is a critical metric that determines the sustainability of the dividend. A stable or increasing dividend could suggest that the company is generating sufficient earnings to support its dividend policy, which is a positive signal for the market. However, investors should also be mindful of the company's growth prospects, as a high payout ratio could limit the company's ability to reinvest in the business.

Market Research Analyst

The dividend announcement also includes information about the preferred stock dividend, which is set at a rate of $171.88 per share for Series A preferred stock. This equates to $0.43 per depositary share, reflecting the fractional ownership each depositary share represents in the preferred stock. Preferred shares often attract a different type of investor due to their fixed income-like characteristics and priority over common stock in dividend payments and liquidation proceeds.

For Atlantic Union Bankshares Corporation, the preferred dividend declaration might be seen as a commitment to uphold the terms of their preferred shareholders' investment. It is also noteworthy that the dividend for preferred shares is often higher than for common stock, reflecting the additional risk preferred shareholders bear regarding the potential for capital appreciation. Investors typically weigh the trade-off between the higher income stream and the lower growth potential when considering preferred shares.

Economist

From an economic perspective, the dividend declaration by Atlantic Union Bankshares Corporation can be seen as a microeconomic indicator of the company's health and a signal to the broader market. A consistent or increasing dividend may be interpreted as a sign of economic strength and a robust financial sector, which can contribute positively to investor sentiment. Conversely, a reduction or omission of dividends could signal financial distress or a strategic shift towards retaining capital for investment.

Moreover, the dividend yield of 3.6% should be contextualized within the current interest rate environment. In a period of rising interest rates, the relative attractiveness of dividend yields may diminish as investors can find higher yields in fixed-income securities with less risk. Companies like Atlantic Union Bankshares Corporation must therefore balance their dividend policy with the need to remain competitive in the broader market for investor capital.

RICHMOND, Va.--(BUSINESS WIRE)-- The Board of Directors (the “Board”) of Atlantic Union Bankshares Corporation (the “Company”) has declared a quarterly dividend of $0.32 per share of common stock, which is the same as the fourth quarter of 2023 and an approximately 7% increase from the dividend in the first quarter of 2023. Based on the Company’s common stock closing price of $35.22 on January 25, 2024, the dividend yield is approximately 3.6%. The common stock dividend is payable on February 23, 2024 to common shareholders of record as of February 9, 2024.

The Board also declared a quarterly dividend on the outstanding shares of the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A (the “Series A preferred stock”). The Series A preferred stock is represented by depositary shares, each representing a 1/400^th ownership interest in a share of Series A preferred stock. The dividend of $171.88 per share (equivalent to $0.43 per outstanding depositary share) is payable on March 1, 2024 to holders of record as of February 15, 2024.

About Atlantic Union Bankshares Corporation

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 109 branches and 123 ATMs located throughout Virginia, and in portions of Maryland and North Carolina as of December 31, 2023. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126266234/en/

Bill Cimino, Senior Vice President and Director of Investor Relations 804.448.0937

Source: Atlantic Union Bankshares Corporation

FAQ

What is the quarterly dividend declared for Atlantic Union Bankshares Corporation's common stock?

The quarterly dividend declared for Atlantic Union Bankshares Corporation's common stock is $0.32 per share.

What is the dividend yield based on the common stock closing price?

The dividend yield is approximately 3.6%, with a common stock closing price of $35.22 on January 25, 2024.

When is the common stock dividend payable?

The common stock dividend is payable on February 23, 2024 to common shareholders of record as of February 9, 2024.

What is the quarterly dividend declared for Atlantic Union Bankshares Corporation's Series A preferred stock?

The quarterly dividend declared for Atlantic Union Bankshares Corporation's Series A preferred stock is $171.88 per share (equivalent to $0.43 per outstanding depositary share).

When is the dividend for the Series A preferred stock payable?

The dividend for the Series A preferred stock is payable on March 1, 2024 to holders of record as of February 15, 2024.