Raymond James Financial Raises Quarterly Dividends on Common Stock; Increases Common Stock Repurchase Authorization

Rhea-AI Summary

Raymond James Financial (NYSE: RJF) announced significant shareholder returns initiatives on December 3, 2024. The company increased its quarterly cash dividend by 11.1% to $0.50 per share from $0.45, payable January 16, 2025, to shareholders of record on January 2, 2025.

The Board also declared a quarterly dividend of $0.3984375 per depositary share for its Series B Preferred Stock and authorized a new $1.5 billion share repurchase program. This replaces the previous authorization from November 30, 2023, which had approximately $644 million remaining. The new repurchase program has no fixed expiration date and allows for purchases through various methods at the company's discretion.

Positive

• 11.1% increase in quarterly dividend from $0.45 to $0.50 per share
• New $1.5 billion share repurchase authorization
• Flexible repurchase terms allowing for optimal timing and execution

Negative

• None.

Insights

Financial Analyst

This dividend increase and share repurchase announcement signals strong financial health and shareholder-friendly capital allocation. The 11.1% dividend hike to $0.50 per share demonstrates management's confidence in sustained cash flow generation. The new $1.5 billion share repurchase program, replacing the previous authorization with $644 million remaining, provides significant flexibility for opportunistic buybacks.

The combined capital return initiatives represent a robust commitment to shareholder value. With a market cap of $34.3 billion, the buyback authorization represents about 4.4% of shares outstanding. The preferred stock dividend maintenance also indicates stable capital structure management. These moves align with the financial sector's focus on capital returns while maintaining operational flexibility for potential acquisitions and growth investments.

ST. PETERSBURG, Fla., Dec. 03, 2024 (GLOBE NEWSWIRE) -- On December 3, 2024, the Raymond James Financial, Inc. (NYSE: RJF) Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.50 per share, payable January 16, 2025 to shareholders of record on January 2, 2025. This is an 11.1% increase over the previous dividend of $0.45 per share paid on October 15, 2024.

The Board declared a quarterly dividend of $0.3984375 per depositary share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (NYSE:  RJF PrB) payable January 2, 2025, to shareholders of record on December 16, 2024. 

The Board also authorized repurchase of the company’s shares of common stock in an aggregate amount of up to $1.5 billion. The $1.5 billion authorization replaces the previous repurchase authorization of $1.5 billion announced on November 30, 2023, under which approximately $644 million was remaining as of December 3, 2024. The repurchases may be made from time to time at prices that the company deems appropriate and subject to market conditions, applicable law, regulatory constraints in connection with previously announced acquisitions and other factors. Such repurchases may be made in the open market, in privately negotiated transactions, or otherwise. The Board’s authorization does not have a fixed expiration date. The repurchase authorization does not obligate the company to repurchase any dollar amount or number of securities and may be suspended or discontinued at any time.

About Raymond James Financial, Inc.

Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,800 financial advisors. Total client assets are $1.54 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future shareholder distributions. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

FAQ

What is Raymond James Financial's new quarterly dividend amount for 2025?

Raymond James Financial (RJF) increased its quarterly dividend to $0.50 per share, payable January 16, 2025, representing an 11.1% increase from the previous $0.45 per share.

How much is Raymond James Financial's new share repurchase authorization?

Raymond James Financial (RJF) authorized a new $1.5 billion share repurchase program on December 3, 2024, replacing the previous authorization which had $644 million remaining.

When will Raymond James Financial pay its next dividend?

Raymond James Financial (RJF) will pay its next quarterly dividend of $0.50 per share on January 16, 2025, to shareholders of record on January 2, 2025.