Old National Bancorp Announces Quarterly Dividends and Stock Repurchase Program
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Insights
The declaration of a quarterly cash dividend by Old National Bancorp signals a sustained return to shareholders, which is a positive indicator of the company's financial health and confidence in its cash flow stability. The dividend yield, calculated by dividing the annual dividends per share by the current stock price, is a critical figure for income-focused investors. The announcement of a stock repurchase program up to $200 million further suggests that the company considers its stock to be undervalued or that it is seeking to return capital to shareholders in a tax-efficient manner. Stock buybacks can also lead to earnings per share (EPS) accretion, as they reduce the number of shares outstanding. However, investors should consider the opportunity cost of such buybacks, as the funds could alternatively be used for investments, debt reduction, or saved for future downturns.
Old National Bancorp's dividend declaration and repurchase program announcement may influence investor sentiment and stock market performance. Dividend payments often attract a specific investor demographic seeking steady income, potentially increasing the stock's stability and attractiveness. The repurchase program may signal to the market that the company's leadership believes the stock is undervalued, which can be interpreted as a positive sign about its future prospects. It is important for investors to consider the broader market context, including interest rate trends and economic indicators, which can impact the attractiveness of dividend stocks relative to other investment opportunities.
From a legal standpoint, the authorization of a stock repurchase program must comply with regulatory requirements and corporate governance standards. The company must ensure that buybacks are executed in a manner that does not manipulate the market price of the stock or disadvantage any shareholders. The timing and method of the repurchases, whether on the open market or through privately negotiated transactions, must adhere to the rules set by the Securities and Exchange Commission (SEC) and other regulatory bodies. Shareholders should be aware that while buybacks can be beneficial, they must be executed with transparency and fairness to maintain market integrity.
EVANSVILLE, Ind., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) today announced that its Board of Directors declared a quarterly cash dividend of
In addition, the Board of Directors declared a quarterly cash dividend of
The Company also announced today that its Board of Directors approved a stock repurchase program which authorizes the repurchase of up to
ABOUT OLD NATIONAL
Old National Bancorp is the holding company of Old National Bank, which is the sixth largest commercial bank headquartered in the Midwest. With approximately
Investor Relations:
Lynell Durchholz
(812) 464-1366
lynell.durchholz@oldnational.com
Media Relations:
Kathy Schoettlin
(812) 465-7269
kathy.schoettlin@oldnational.com
FAQ
What is the quarterly cash dividend declared by Old National Bancorp for its common stock?
When will the quarterly cash dividend for common stock be payable?
What is the quarterly cash dividend declared by Old National Bancorp for its preferred stock?
When will the quarterly cash dividend for preferred stock be payable?
What is the amount authorized for the stock repurchase program by Old National Bancorp?