Wintrust Financial Corporation Announces Cash Dividends, Increasing Quarterly Common Stock Dividend Rate By 12.5%

Rhea-AI Summary

Wintrust Financial Corporation (WTFC) has announced a 12.5% increase in its quarterly cash dividend to $0.45 per share of outstanding common stock. The dividend is payable on February 22, 2024, and the Board of Directors also approved dividends on the Company's preferred stock. This signifies a positive financial move for the company and its shareholders.

Insights

Financial Analyst

The announcement of Wintrust Financial Corporation's increase in its quarterly cash dividend to $0.45 per share represents a strategic move that signals confidence in the company's financial stability and future earnings potential. The 12.5% increase from the previous $0.40 dividend is a significant uptick, suggesting that Wintrust has generated sufficient cash flow and has a positive outlook on maintaining or increasing profitability. Investors often view such dividend increases as a sign of a company's strong financial health and a commitment to returning value to shareholders.

For stakeholders, this could translate into a more attractive total return on their investment, considering both capital gains and dividend income. However, it is essential to assess the company's payout ratio and compare it with industry standards to ensure that the increased dividend is sustainable and not at the expense of necessary capital reinvestment. A high payout ratio could indicate potential risk if the company is not retaining enough earnings for growth.

Market Research Analyst

Wintrust's decision to increase dividends may also reflect a broader trend within the financial services industry, where firms seek to enhance shareholder value amidst competitive markets. This move could potentially influence investor sentiment and stock market performance, as it might be interpreted as a benchmark for other financial institutions. It is worth noting that dividend-paying stocks, particularly those with a history of increasing payouts, are often considered more resilient during market volatility.

Moreover, the approval of dividends on the preferred stock series D and E provides insights into the company's capital allocation strategy, addressing the interests of preferred shareholders and potentially affecting the demand for these securities. The fixed-to-floating and fixed-rate reset features of these preferred stocks indicate a complex financial instrument designed to appeal to investors seeking both income and protection against interest rate fluctuations.

ROSEMONT, Ill., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust” or the “Company”) (Nasdaq: WTFC) today announced that the Company’s Board of Directors approved a quarterly cash dividend of $0.45 per share of outstanding common stock. The dividend is payable on February 22, 2024 to shareholders of record as of February 8, 2024. This represents an increase of approximately 12.5% from the $0.40 quarterly cash dividend paid in each of the quarters of 2023.

Additionally, the Company’s Board of Directors approved quarterly cash dividends on outstanding shares of the Company’s 6.50% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series D and of the Company’s 6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E. Each dividend is payable on April 15, 2024 to shareholders of record as of April 1, 2024.

About Wintrust

Wintrust is a financial holding company with assets over $56 billion whose common stock is traded on the Nasdaq Global Select Market. Built on the "HAVE IT ALL" model, Wintrust offers sophisticated technology and resources of a large bank while focusing on providing service-based community banking to each and every customer. Wintrust operates fifteen community bank subsidiaries, with over 170 banking locations located in the greater Chicago and southern Wisconsin market areas. Additionally, Wintrust operates various non-bank business units including business units which provide commercial and life insurance premium financing in the United States, a premium finance company operating in Canada, a company providing short-term accounts receivable financing and value-added out-sourced administrative services to the temporary staffing services industry, a business unit engaging primarily in the origination and purchase of residential mortgages for sale into the secondary market throughout the United States, and companies providing wealth management services and qualified intermediary services for tax-deferred exchanges.

Forward-Looking Information

This press release contains forward-looking statements within the meaning of the federal securities laws. Investors are cautioned that such statements are predictions and actual events or results may differ materially. Wintrust's expected financial results or other plans are subject to a number of risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Wintrust's most recent Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. Forward-looking statements speak only as of the date made and Wintrust undertakes no duty to update the information.

FOR MORE INFORMATION CONTACT:
Timothy S. Crane, President & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Website address: www.wintrust.com

FAQ

What is the quarterly cash dividend approved by Wintrust Financial Corporation?

The quarterly cash dividend approved by Wintrust Financial Corporation is $0.45 per share of outstanding common stock.

When is the dividend payable to shareholders of Wintrust Financial Corporation?

The dividend is payable on February 22, 2024, to shareholders of record as of February 8, 2024.

What is the percentage increase in the quarterly cash dividend compared to 2023?

The increase is approximately 12.5% from the $0.40 quarterly cash dividend paid in each of the quarters of 2023.

What dividends were approved for Wintrust Financial Corporation's preferred stock?

The Board of Directors approved quarterly cash dividends on the Company’s 6.50% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series D, and the Company’s 6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E.

When are the dividends on Wintrust Financial Corporation's preferred stock payable?

Each dividend is payable on April 15, 2024, to shareholders of record as of April 1, 2024.