KEYCORP DECLARES QUARTERLY CASH DIVIDEND ON COMMON SHARES AND PREFERRED STOCKS; SETS ANNUAL MEETING DATE

Rhea-AI Summary

KeyCorp (KEY) declares dividends for the first quarter of 2024, including a cash dividend of $0.205 per share on outstanding common shares and dividends on various series of preferred stock. The KeyCorp 2024 Annual Meeting of Shareholders will be held on May 9, 2024.

Insights

Financial Analyst

The declaration of dividends by KeyCorp is a significant indicator of the company's financial health and its commitment to shareholder returns. The cash dividend of $0.205 per common share suggests that the company maintains a steady flow of income that it can distribute to its shareholders, which is often viewed favorably in the market. The additional dividends on various series of preferred stock indicate the company's obligations to preferred shareholders and its ability to fulfill them.

From a financial analysis perspective, the dividend yield, which is the dividend per share divided by the share price, becomes a critical factor for investors seeking income. The consistency and potential growth of these dividends can also be a sign of stable earnings and a strong balance sheet. Investors may compare the declared dividend against the company's earnings to assess the payout ratio, which can indicate whether the dividends are sustainable in the long term.

Market Research Analyst

KeyCorp's dividend announcement can impact investor sentiment and stock market performance. Dividends are often a reflection of a company's confidence in its future cash flows and profitability. The market may interpret stable or increasing dividends as a positive signal, potentially leading to a bullish sentiment toward KeyCorp's stock. Conversely, if dividends were to decrease or be suspended, it might indicate underlying financial difficulties, potentially leading to bearish sentiment.

Furthermore, the timing of the dividend payments can have implications for the stock's trading patterns. Investors might exhibit 'dividend capturing' strategies around the ex-dividend date, which could increase trading volume and volatility. Additionally, institutional investors with income-generating mandates may be particularly interested in the preferred stock dividends, given their typically higher yields compared to common stock.

Economist

Dividends are a mechanism for redistributing a corporation's profits back to shareholders and can have broader economic implications. For example, increased dividends can lead to higher disposable income for investors, which could potentially stimulate consumer spending. However, it is essential to consider the opportunity cost of these dividend payments. The funds distributed as dividends could alternatively be reinvested into the company for research and development, expansion, or debt reduction.

An economist might analyze the dividend decisions in the context of the current economic cycle, interest rate environment and corporate tax policies. In a low-interest-rate environment, high dividend yields are particularly attractive to investors seeking returns that outpace inflation. Additionally, the decision to pay dividends may be influenced by corporate tax considerations, as dividends can sometimes be taxed more favorably for investors than capital gains.

CLEVELAND, Jan. 10, 2024 /PRNewswire/ -- KeyCorp (NYSE: KEY) announced today that its Board of Directors declared the following dividends for the first quarter of 2024:

• A cash dividend of $0.205 per share on the corporation's outstanding common shares (NYSE: KEY). The dividend is payable on March 15, 2024, to holders of record of such Common Shares as of the close of business on February 27, 2024;
    
• A dividend of $312.50 per share (equivalent to $12.50 per depositary share (CUSIP #493267AK4)) on the corporation's outstanding Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series D (CUSIP #493267603), payable on March 15, 2024 to holders of record as of the close of business on February 29, 2024, for the period commencing on (and including) December 15, 2023 to (but excluding) March 15, 2024;
    
• A dividend of $15.3125 per share (equivalent to $.382813 per depositary share (NYSE: KEY.I)) on the corporation's outstanding Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E (CUSIP #493267801), payable on March 15, 2024 to holders of record as of the close of business on February 29, 2024, for the period commencing on (and including) December 15, 2023 to (but excluding) March 15, 2024;
    
• A dividend of $14.1250 per share (equivalent to $.353125 per depositary share (NYSE: KEY.J)) on the corporation's outstanding Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F (CUSIP #493267884), payable on March 15, 2024 to holders of record as of the close of business on February 29, 2024, for the period commencing on (and including) December 15, 2023 to (but excluding) March 15, 2024;
    
• A dividend of $14.0625 per share (equivalent to $.351563 per depositary share (NYSE: KEY.K)) on the corporation's outstanding Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G (CUSIP #493267850), payable on March 15, 2024 to holders of record as of the close of business on February 29, 2024, for the period commencing on (and including) December 15, 2023 to (but excluding) March 15, 2024; and
    
• A dividend of $15.50 per share (equivalent to $.3875 per depositary share (NYSE: KEY.L)) on the corporation's outstanding Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H (CUSIP #493267835), payable on March 15, 2024 to holders of record as of the close of business on February 29, 2024, for the period commencing on (and including) December 15, 2023 to (but excluding) March 15, 2024.

In addition, the Board of Directors has determined that the KeyCorp 2024 Annual Meeting of Shareholders will be held on Thursday, May 9, 2024.

About KeyCorp
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio. Key is one of the nation's largest bank-based financial services companies, with assets of approximately $188 billion at September 30, 2023. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC. 

 

 

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SOURCE KeyCorp

FAQ

What dividends did KeyCorp declare for the first quarter of 2024?

KeyCorp declared a cash dividend of $0.205 per share on outstanding common shares and dividends on various series of preferred stock.

When will the dividends be payable?

The dividends will be payable on March 15, 2024.

When is the KeyCorp 2024 Annual Meeting of Shareholders?

The KeyCorp 2024 Annual Meeting of Shareholders will be held on Thursday, May 9, 2024.