WaFd, Inc. Announces Cash Dividend of 26 Cents Per Share and Increase in Share Repurchase Authorization
Today, WaFd announced a regular cash dividend of 26 cents per share, payable on June 7, 2024, to shareholders of record as of May 24, 2024. This marks the 165th consecutive quarterly cash dividend for the company. Additionally, the Board has increased the share repurchase authorization by 10 million shares, raising the total authorized amount to 11.8 million shares. Over the past three fiscal years, WaFd has repurchased 12.7 million shares at an average price of $31.32, equating to 17% of the shares outstanding as of October 1, 2020. WaFd is a parent company of Washington Federal Bank, which operates 210 branches across nine states and reported $30.1 billion in assets, $21.3 billion in deposits, and $2.9 billion in shareholders' equity as of March 31, 2024.
- Regular cash dividend of 26 cents per share for shareholders.
- 165th consecutive quarterly cash dividend.
- Increased share repurchase authorization by 10 million shares.
- Total authorized share repurchase now at 11.8 million shares.
- Repurchased 12.7 million shares over the past three fiscal years.
- Weighted average repurchase price of $31.32 per share.
- Repurchases represent 17% of shares outstanding as of October 1, 2020.
- Reported $30.1 billion in assets as of March 31, 2024.
- Reported $21.3 billion in deposits.
- Reported $2.9 billion in shareholders' equity.
- No new financial performance metrics reported beyond March 31, 2024.
- Increased share repurchase may indicate a lack of better investment opportunities.
- Potential shareholder dilution risk if share repurchases are not executed wisely.
Insights
The announcement of a cash dividend of 26 cents per share and the increase in share repurchase authorization are signals of WaFd, Inc.'s strong financial health and management's confidence in the company's future performance. The dividend's consistency, marking the 165th consecutive quarterly cash dividend, highlights WaFd's commitment to returning value to shareholders.
This stability can be reassuring to investors, especially those seeking steady income from dividends. Additionally, the increased share repurchase authorization by 10 million shares reflects a strategic move to enhance shareholder value by potentially reducing the number of shares outstanding, thereby increasing earnings per share (EPS).
For retail investors, both actions indicate that WaFd has sufficient liquidity and capital to support such initiatives without compromising its financial stability. However, it's also important to consider the potential opportunity cost. Funds used for dividends and share buybacks could alternatively be reinvested into growth opportunities. Monitoring WaFd's future financial performance and strategic investments will be important to assessing the long-term impact of these actions.
Additionally, WaFd's performance with a reported $30.1 billion in assets and $2.9 billion in shareholders' equity indicates a solid balance sheet. This makes their financial health robust in the current economic environment, potentially providing a cushion against future uncertainties.
WaFd, Inc.'s decision to announce a regular cash dividend and increase share repurchase authorization aligns with prevalent market trends among established financial institutions aiming to optimize shareholder returns. These actions often boost investor confidence and can lead to positive market perception, particularly among retail investors who favor predictable income streams and value enhancement strategies.
The 17% reduction in shares outstanding over the past three fiscal years underscores a proactive approach in managing capital structure and improving per-share metrics. By repurchasing shares at a weighted average price of
Investors should, however, remain cognizant of broader market conditions and the banking sector's regulatory landscape, which can impact the efficacy of these strategies. Given the current economic volatility, WaFd's ability to maintain its dividend payments and share repurchase program reflects well on its resilience and operational robustness. Assessing the sustainability of these actions in the context of emerging market trends and economic indicators will be vital for long-term investment decisions.
The Board also increased the number of shares authorized for repurchase by 10 million, bringing the currently authorized amount up to 11.8 million shares. Over the last three fiscal years the Company has repurchased 12.7 million shares at a weighted average price of
President and Chief Executive Officer, Brent J. Beardall commented, “the Board’s actions today express its confidence in WaFd, Inc’s future.”
WaFd, Inc. is the parent company of Washington Federal Bank, a federally insured
Important Cautionary Statements
The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Statements in this press release that speak to the Company’s future performance or financial condition constitute “forward-looking statements” as defined by federal law. Such statements are based on present information the Company has related to its present business circumstances. Although the Company believes any such statements are based on reasonable assumptions, there is no assurance that actual or future outcomes will not be materially different.
Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Litigation Reform Act of 1995. Additional information about risks and additional matters that could lead to material changes in the Company’s performance or financial condition are contained in the Company’s annual and quarterly reports filed with the SEC, including under “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended September 30, 2023.
To find out more about WaFd Bank, or to find a copy of our 10-K or our other SEC filings, please visit our website www.wafdbank.com.
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WaFd, Inc.
425 Pike Street,
Brad Goode, SVP, Chief Marketing Officer
206-626-8178
Brad.Goode@wafd.com
Source: WaFd, Inc.
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