U.S. Bancorp announces quarterly dividends

Rhea-AI Summary

U.S. Bancorp (NYSE: USB) announces regular quarterly dividends for common and preferred stockholders, with a total annual dividend of $1.96 per common share.

Insights

Financial Analyst

The announcement of U.S. Bancorp's regular quarterly dividend is a substantive piece of information for current and potential investors. The dividend of $0.49 per common share signals the company's current profitability and its ability to generate cash flow, which is a strong indicator of financial health. Moreover, the consistency of the dividend payments suggests a stable financial position and a commitment to returning value to shareholders.

For investors, the yield, calculated as the annual dividend per share divided by the stock's price, is a key metric. It provides insight into the return on investment from the dividend relative to the stock price. In this context, the declared annual dividend of $1.96 per common share can be compared against the sector's average to assess attractiveness.

Furthermore, the declaration of dividends on various series of preferred stock indicates a tiered approach to dividend payments, catering to different investor preferences. Preferred stock dividends are typically higher than those of common stock and are prioritized in payment, which might appeal to income-focused investors.

Market Research Analyst

U.S. Bancorp's dividend announcement also has implications for market perception and the bank's competitive positioning. Dividends are often seen as a signal of a company's confidence in its future earnings. Thus, maintaining or increasing dividends can positively influence investor sentiment and potentially the stock price.

Investors and analysts often look at dividend payout ratios (the percentage of earnings paid to shareholders in dividends) to gauge whether a company is paying out a sustainable amount of its earnings. A payout ratio that is too high might not be sustainable in the long term, while a ratio that is too low might indicate that the company is retaining more earnings for growth or that it has ample room to increase dividends in the future.

Additionally, in the banking industry, regulatory capital requirements and stress tests impact the ability of banks to pay dividends. It's essential to consider the regulatory environment and capital adequacy when analyzing dividend announcements in this sector.

Economist

From an economic perspective, dividend declarations can reflect broader economic conditions. In a robust economy, banks typically perform well due to increased lending and investment activities, which can lead to higher dividends. Conversely, during economic downturns, banks may face pressure on profits, which could affect dividend payments.

The decision to pay dividends also relates to the opportunity cost of capital allocation. By opting to pay dividends, U.S. Bancorp is indicating that returning capital to shareholders is currently a preferable option over alternative uses of funds, such as reinvestment in the business or acquisitions. This decision is influenced by the bank's assessment of potential growth opportunities and the economic landscape.

It is also important to consider the impact of interest rate changes on the banking sector. As interest rates rise, banks may benefit from wider net interest margins, which could support stronger dividend payments. However, if rates rise too quickly, it could stifle loan growth and increase payment defaults, potentially impacting dividends negatively.

MINNEAPOLIS--(BUSINESS WIRE)-- The Board of Directors of U.S. Bancorp (NYSE: USB) has declared a regular quarterly dividend of $0.49 per common share, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024. At this quarterly dividend rate, the annual dividend is equivalent to $1.96 per common share.

The Board of Directors also declared the following:

• A regular quarterly dividend of $1,667.221 per share (equivalent to $16.672210 per depositary share) on the Series A Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.
• A regular quarterly dividend of $390.264 per share (equivalent to $0.390264 per depositary share) on the Series B Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.
• A regular semi-annual dividend of $662.500 per share (equivalent to $26.500000 per depositary share) on the Series J Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.
• A regular quarterly dividend of $343.750 per share (equivalent to $0.343750 per depositary share) on the Series K Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.
• A regular quarterly dividend of $234.375 per share (equivalent to $0.234375 per depositary share) on the Series L Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.
• A regular quarterly dividend of $250.000 per share (equivalent to $0.250000 per depositary share) on the Series M Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.
• A regular quarterly dividend of $231.250 per share (equivalent to $9.250000 per depositary share) on the Series N Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.
• A regular quarterly dividend of $281.250 per share (equivalent to $0.281250 per depositary share) on the Series O Non-Cumulative Perpetual Preferred Stock of U.S. Bancorp, payable April 15, 2024, to stockholders of record at the close of business on March 29, 2024.

About U.S. Bancorp

U.S. Bancorp, with more than 70,000 employees and $663 billion in assets as of December 31, 2023, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312306222/en/

Investor contact: George Andersen, Director of Investor Relations, U.S. Bancorp Investor Relations

george.andersen@usbank.com, 612.303.3620, @usbank_news

Media contact: Jeff Shelman, U.S. Bancorp Public Affairs and Communications

jeffrey.shelman@usbank.com, 612.303.9933, @usbank_news

Source: U.S. Bancorp

FAQ

What is the ticker symbol for U.S. Bancorp?

The ticker symbol for U.S. Bancorp is 'USB'.

When is the quarterly dividend payable to U.S. Bancorp stockholders?

The quarterly dividend is payable on April 15, 2024, to stockholders of record as of March 29, 2024.

What is the annual dividend equivalent per common share for U.S. Bancorp?

The annual dividend equivalent per common share is $1.96.

What types of preferred stock dividends were declared by U.S. Bancorp?

U.S. Bancorp declared regular quarterly dividends for Series A, B, J, K, L, M, N, and O Non-Cumulative Perpetual Preferred Stock.