Citigroup Declares Common Stock Dividend; Citigroup Declares Preferred Dividends

Rhea-AI Summary

Citigroup Inc. (C) declares a quarterly dividend of $0.53 per share for its common stock, payable on February 23, 2024. Dividends for various preferred stock series are also declared, with payments ranging from $9.6875 to $31.25 per receipt held.

Insights

Financial Analyst

The declaration of dividends by Citigroup Inc. reflects the company's current financial stability and its ability to return value to shareholders. The consistency of dividend payments can be seen as a positive signal to investors, indicating a reliable stream of income, which is particularly attractive to income-focused investors. The varied rates among the preferred stock series suggest a stratified risk-return profile, catering to different investor preferences.

It is crucial to analyze the dividend yield, which is calculated by dividing the annual dividends per share by the stock's price per share. For Citigroup, this metric can be compared against industry benchmarks to assess the attractiveness of the stock relative to its peers. Additionally, the payout ratio, which measures the proportion of earnings paid out as dividends, should be considered to evaluate the sustainability of these dividends in the long term.

Investors should also be aware of the ex-dividend date, which is one business day before the record date. Stock purchases must be settled before the ex-dividend date to be eligible for the dividend. This is critical for timing investment decisions and understanding the potential short-term movements in stock price around these dates.

Market Research Analyst

Dividend announcements often influence market perception and can affect stock performance. Investors may interpret the declared dividends as an indicator of Citigroup's future prospects and management's confidence in the company's earnings. Market participants will closely monitor the dividend coverage ratio, which indicates how easily a company can pay its dividends from net income. A higher coverage ratio suggests greater comfort and stability.

Moreover, the broader economic context, including interest rate trends set by the Federal Reserve, impacts the attractiveness of dividend stocks. In a low-interest-rate environment, dividend stocks like Citigroup become more appealing due to their higher yields compared to fixed-income alternatives. Conversely, rising interest rates can lead to a reevaluation of dividend stock positions as investors seek higher yields elsewhere.

Lastly, the performance of Citigroup's stock post-dividend declaration could serve as a barometer for the banking sector's health and investor sentiment toward financial stocks, given Citigroup's position as a leading global bank.

Economist

Dividend distributions can have macroeconomic implications, as they represent a transfer of wealth from corporations to shareholders, which can subsequently affect consumption patterns. For a multinational corporation like Citigroup, these dividends can also impact international capital flows, as foreign investors repatriate income. This is particularly relevant in the context of global economic uncertainty and currency volatility.

The decision to maintain or increase dividends may reflect Citigroup's management's outlook on the economy, as a bullish stance might lead to more aggressive capital return policies. Conversely, a more cautious approach might result in retaining earnings to bolster balance sheets against potential economic downturns.

Given Citigroup's significant role in the financial sector, its dividend policy can also serve as an informal indicator of the sector's health and the broader economic environment, influencing investor confidence and market stability.

NEW YORK--(BUSINESS WIRE)-- The Board of Directors of Citigroup Inc. today declared a quarterly dividend on Citigroup’s common stock of $0.53 per share, payable on February 23, 2024 to stockholders of record on February 5, 2024.

The Board of Directors of Citigroup Inc. also declared dividends on Citigroup’s preferred stock as follows:

– 5.350% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series D, payable February 15, 2024, to holders of record on February 5, 2025. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $23.274287778 for each receipt held.

– 7.125% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series J, payable March 29, 2024, to holders of record on March 19, 2024. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $0.6098105903 for each receipt held.

– 6.250% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series T, payable February 15, 2024, to holders of record on February 5, 2024. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $31.25 for each receipt held.

– 5.000% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series U, payable March 12, 2024, to holders of record on March 1, 2024. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $25.00 for each receipt held.

– 4.700% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series V, payable January 30, 2024, to holders of record on January 19, 2024. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $23.50 for each receipt held.

– 4.000% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series W, payable March 11, 2024, to holders of record on March 1, 2024. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $10.00 for each receipt held.

– 3.875% Fixed Rate Reset Noncumulative Preferred Stock, Series X, payable February 20, 2024, to holders of record on February 9, 2024. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $9.6875 for each receipt held.

– 4.150% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series Y, payable February 15, 2024, to holders of record on February 5, 2024. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $10.375 for each receipt held.

– 7.375% Fixed Rate Noncumulative Preferred Stock, Series Z, payable February 15, 2024, to holders of record on February 5, 2024. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $18.4375 for each receipt held.

– 7.625% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series AA, payable February 15, 2024, to holders of record on February 5, 2024. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $30.50 for each receipt held.

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

View source version on businesswire.com: https://www.businesswire.com/news/home/20240111080142/en/

Media: Danielle Romero-Apsilos (212) 816-2264

Investors: Jennifer Landis (212) 559-2718

Source: Citigroup Inc.

FAQ

What is the quarterly dividend declared by Citigroup Inc. (C) for its common stock?

Citigroup Inc. (C) has declared a quarterly dividend of $0.53 per share for its common stock.

When is the dividend payable for Citigroup Inc. (C) common stock?

The dividend for Citigroup Inc. (C) common stock is payable on February 23, 2024.

What are the dividend payments for Citigroup Inc. (C) preferred stock series?

Dividends for various Citigroup Inc. (C) preferred stock series range from $9.6875 to $31.25 per receipt held.