Regions Financial’s upcoming dividend (NYSE: RF) will be higher than last year


The advice of Regional finance company (NYSE: RF) announced that it will increase its dividend on January 3 to $ 0.17. This will bring the annual payout to 2.7% of the share price, which is higher than what most companies in the industry pay.

Regions Financial’s income easily covers distributions

We like to see robust dividend yields, but it doesn’t matter if the payout isn’t sustainable. However, Regions Financial’s profits easily cover the dividend. This means that most of its profits are kept to grow the business.

Going forward, earnings per share are expected to drop 21.2% over the next year. Assuming the dividend continues according to recent trends, we think the payout ratio could be 36%, which we are quite comfortable with and think is doable on an earnings basis.

NYSE: RF Historical Dividend October 24, 2021

Regions Financial has a strong track record

The company has a strong history of paying dividends with very little fluctuation. The first annual payment in the past 10 years was US $ 0.04 in 2011, and the most recent year’s payment was US $ 0.68. This means that he increased his distributions by 33% per year during that period. We can see that the payments have shown a very nice upward momentum without weakening, which gives reassurance that future payments will also be reliable.

The dividend seems likely to increase

Investors in the company will be happy to receive dividends for some time. We are encouraged to see that Regions Financial has increased its earnings per share by 26% per year over the past five years. Profits grew rapidly and, with a low payout ratio, we think the company could turn out to be a great dividend stock.

We really like the Regions Financial dividend

Overall, a dividend increase is always good, and we think Regions Financial is a solid income stock thanks to its track record and earnings growth. The company generates a lot of cash, and profits also cover distributions quite easily. Note that earnings are expected to decline over the next 12 months, which won’t be a problem if this doesn’t become a trend, but could cause some turmoil next year. Considering all of this, this looks like a good dividend opportunity.

Market movements testify to the high value of a coherent dividend policy compared to a more unpredictable one. However, there are other things for investors to consider when analyzing the performance of stocks. For example, we have chosen 1 warning sign for financial regions that investors should be aware of before committing capital to this stock. We have also set up a list of global stocks with a solid dividend.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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