Stifel Raises Quarterly Common Stock Cash Dividend By 17% and Declares Preferred Stock Cash Dividend

Rhea-AI Summary

Stifel Financial Corp. (NYSE: SF) has declared a cash dividend on shares of its common stock of $0.42 per share, payable March 15, 2024, to shareholders of record at the close of business on March 1, 2024. The Board of Directors also declared a quarterly cash dividend on the outstanding shares of its 6.25% Non-Cumulative Perpetual Preferred Stock, Series B, 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, and 4.50% Non-Cumulative Perpetual Preferred Stock, Series D. The cash dividends are payable on March 15, 2024 to shareholders of record on March 1, 2024.

Insights

Financial Analyst

The declaration of a cash dividend by Stifel Financial Corp. is a signal of the company's current financial health and its ability to generate sufficient cash flow to return value to shareholders. The specific dividend rates for common and preferred stock indicate the company's commitment to providing consistent returns, which can be particularly appealing to income-focused investors. The preferred stock dividends are notable for being non-cumulative, meaning that if the company decides not to declare a dividend in the future, shareholders will not be entitled to dividends in arrears.

From a financial analysis perspective, the payout ratio, which is the proportion of earnings paid out as dividends, is a critical factor to monitor. If the payout ratio is too high, it could indicate that the company is not reinvesting enough back into the business to support long-term growth. Conversely, a reasonable payout ratio, often between 35% and 55% for healthy companies, suggests a balance between rewarding shareholders and funding future expansion.

Investors may also consider the dividend yield, calculated by dividing the annual dividend per share by the stock's price. A higher yield can make the stock more attractive in a low-interest-rate environment, but it is essential to assess the sustainability of these dividends. An unusually high yield could signal potential financial trouble or that the stock price has recently decreased significantly.

Market Research Analyst

Stifel Financial Corp.'s dividend announcement should be evaluated in the context of the broader financial services industry and market conditions. The industry is sensitive to economic cycles, interest rates and regulatory changes. In a rising interest rate environment, financial institutions like Stifel can benefit from wider net interest margins. However, they may also face headwinds from a potential decrease in securities trading or investment banking activity if the economy slows down.

Investors might look at how Stifel's dividend announcement compares with its peers in terms of yield, growth and consistency. A company's dividend policy can influence its stock's attractiveness relative to its competitors. If Stifel's dividend increases or remains stable while peers cut theirs, it may reflect stronger resilience or a better capital allocation strategy, potentially making Stifel's stock more appealing to investors seeking stable dividend income.

Additionally, the trading of Stifel's preferred stock under different symbols provides investors with options to invest in the company's equity at different risk and return levels. The performance of these securities on the NYSE will depend on investor sentiment, the perceived stability of the dividends and the overall health of the financial sector.

Economist

The dividend declaration by Stifel Financial Corp. can be interpreted within the broader economic context. Dividend payouts are often seen as a barometer for economic confidence, as companies are more likely to distribute profits to shareholders when they anticipate stable or improving economic conditions. Stifel's ability to pay dividends may suggest confidence in their business model and the economic landscape, particularly in the financial sector which is a leading indicator of economic trends.

Furthermore, the impact of dividends on consumer spending should not be underestimated. Dividends contribute to the income of investors, potentially increasing their purchasing power. This can have a multiplier effect on the economy, especially if a significant number of shareholders reinvest their dividends into the market or increase their consumption.

It is also worth noting that the financial sector's performance is closely tied to monetary policy. The Federal Reserve's actions on interest rates can directly impact the profitability of financial institutions. In this light, Stifel's dividend announcement may reflect not only the company's financial stability but also its management's outlook on future monetary policy and its impact on the company's operations.

ST. LOUIS, Feb. 07, 2024 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today announced that its Board of Directors has declared a cash dividend on shares of its common stock of $0.42 per share, payable March 15, 2024, to shareholders of record at the close of business on March 1, 2024.

The Board of Directors also declared a quarterly cash dividend on the outstanding shares of its 6.25% Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), 6.125% Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”), and 4.50% Non-Cumulative Perpetual Preferred Stock, Series D (the “Series D Preferred Stock”). The declared cash dividend on the Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock is for the period from December 15, 2023, up to, but excluding, March 15, 2024. The declared cash dividend equated to approximately $0.390625 per depositary share, or $390.625 per share of the Series B Preferred Stock outstanding. The declared cash dividend equated to approximately $0.3828125 per depositary share, or $382.8125 per share of the Series C Preferred Stock outstanding. The declared cash dividend equated to approximately $0.281250 per depositary share, or $281.250 per share of the Series D Preferred Stock outstanding. The cash dividends are payable on March 15, 2024 to shareholders of record on March 1, 2024.

The Company’s Series B Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrB”, the Company’s Series C Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrC”, and the Company’s Series D Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrD.”

Stifel Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.

Stifel Investor Relations Contact
Joel Jeffrey, Senior Vice President
(212) 271-3610 direct
investorrelations@stifel.com                                

FAQ

What is the cash dividend declared on shares of Stifel Financial Corp. (NYSE: SF) common stock?

The cash dividend declared on shares of Stifel Financial Corp. (NYSE: SF) common stock is $0.42 per share, payable on March 15, 2024, to shareholders of record at the close of business on March 1, 2024.

What are the quarterly cash dividends declared on the outstanding shares of Stifel Financial Corp. (NYSE: SF) preferred stock?

The Board of Directors declared a quarterly cash dividend on the outstanding shares of its 6.25% Non-Cumulative Perpetual Preferred Stock, Series B, 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, and 4.50% Non-Cumulative Perpetual Preferred Stock, Series D.

When are the cash dividends payable?

The cash dividends are payable on March 15, 2024 to shareholders of record on March 1, 2024.

What is the ticker symbol for Stifel Financial Corp.'s (NYSE: SF) Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock?

The ticker symbol for Stifel Financial Corp.'s (NYSE: SF) Series B Preferred Stock is 'SF PrB', for Series C Preferred Stock is 'SF PrC', and for Series D Preferred Stock is 'SF PrD'.