Yahoo Finance Regions Financial Corp's Dividend Analysis
Insights into the Upcoming Dividend and Historical Performance
Regions Financial Corp (NYSE:RF) recently announced a dividend of $0.24 per share, payable on 2024-07-01, with the ex-dividend date set for 2024-06-03. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Regions Financial Corp's dividend performance and assess its sustainability.
What Does Regions Financial Corp Do?
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Regions Financial is a regional bank headquartered in Alabama, with branches primarily in the Southeastern and Midwestern United States. Regions primarily provides traditional commercial and retail banking and also offers mortgage services, asset management, wealth management, securities brokerage, and trust services.
A Glimpse at Regions Financial Corp's Dividend History
Regions Financial Corp has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis.
Regions Financial Corp has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years.
Breaking Down Regions Financial Corp's Dividend Yield and Growth
As of today, Regions Financial Corp currently has a 12-month trailing dividend yield of 4.75% and a 12-month forward dividend yield of 4.96%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Regions Financial Corp's annual dividend growth rate was 12.40%. Extended to a five-year horizon, this rate decreased to 12.00% per year. And over the past decade, Regions Financial Corp's annual dividends per share growth rate stands at an impressive 22.20%.
Based on Regions Financial Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Regions Financial Corp stock as of today is approximately 8.37%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of 2024-03-31, Regions Financial Corp's dividend payout ratio is 0.47.
Regions Financial Corp's profitability rank of 6 out of 10 suggests fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Regions Financial Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Regions Financial Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model, increasing by approximately 7.40% per year on average.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Regions Financial Corp's earnings increased by approximately 26.60% per year on average.
Lastly, the company's 5-year EBITDA growth rate of 13.60% outperforms approximately 69.73% of global competitors.
Next Steps
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
