CINCINNATI - Fifth Third Bancorp (NASDAQ:FITB) announced today the declaration of cash dividends across a range of its preferred and common share series, setting the stage for payments to shareholders in the upcoming month.
The common shares of Fifth Third Bancorp are set to receive a dividend of $0.35 per share for the second quarter of 2024. Shareholders on record by June 28, 2024, will be eligible for the dividend payout scheduled for July 15, 2024.
In addition to common shares, dividends for various series of preferred stock were also declared. The Series H preferred shares, carrying a 5.10% Fixed-to-Floating Rate, will see dividends of approximately $21.7308 per depositary share, payable on July 1, 2024, to shareholders recorded by June 27, 2024.
The Series I preferred shares, with a 6.625% Fixed-to-Floating Rate, have been announced to receive roughly $0.58604 per depositary share. Similarly, the Series J preferred shares, at a 4.90% Fixed-to-Floating Rate, will have dividends of about $21.9765 per depositary share. Both Series I and J dividends are also due on July 1, 2024, for shareholders listed as of June 27, 2024.
Series K preferred shares, featuring a 4.95% Fixed Rate, will have dividends close to $0.30938 per depositary share, and Series L preferred shares, at a 4.50% Fixed-Rate Reset, are set for dividends of approximately $11.25 per depositary share. Both are payable on the same dates as Series H, I, and J.
Lastly, the Class B Series A preferred shares, with a 6.00% rate, will receive dividends of $0.3750 per depositary share, following the same payment schedule.
Fifth Third Bancorp, with a history dating back to 1858, has been recognized as one of the World’s Most Ethical Companies® by Ethisphere for several years. The bank emphasizes innovation, community impact, and ethical business practices. This dividend declaration is a continuation of Fifth Third's commitment to providing value to its shareholders.
The information for this dividend declaration is based on a press release statement from Fifth Third Bancorp.
In other recent news, Fifth Third Bancorp has been a focal point of interest in the financial services sector due to its robust Q1 2024 performance, marked by earnings per share of $0.70, or $0.76 excluding charges. Analysts have projected diluted EPS for FY 2024E at $3.30 and $3.72 for FY 2025E, based on anticipated benefits from loan growth, asset repricing, and industry-leading operating efficiency.
Wells Fargo (NYSE:WFC) has reaffirmed an Overweight rating on the bank's stock, while Wolfe Research and JPMorgan (NYSE:JPM) have upgraded the company's rating to 'Outperform' and 'Overweight', respectively. However, Baird Equity Research downgraded the company to 'Neutral', citing the stock's fair valuation after notable outperformance.
In terms of recent developments, Fifth Third Bancorp has implemented a new general ledger accounting system and plans to repurchase between $300 million to $400 million in common stock during the second half of 2024. These are some of the recent developments that have been shaping the company's trajectory.
InvestingPro Insights
Fifth Third Bancorp (NASDAQ:FITB) not only continues its tradition of rewarding shareholders with regular dividend payments but also demonstrates a strong financial foundation. According to recent data from InvestingPro, the company boasts a market capitalization of $24.37 billion and an attractive Price/Earnings (P/E) ratio of 11.28, reflecting investor confidence in its earnings potential.
Investors may find the dividend yield particularly compelling, currently standing at 3.88%, which is a testament to Fifth Third Bancorp’s commitment to delivering shareholder value. This aligns with one of the InvestingPro Tips, highlighting that the company has maintained dividend payments for an impressive 50 consecutive years. Additionally, the company has managed to raise its dividend for 13 consecutive years, underlining its consistent performance and stable financial health.
While the InvestingPro Tips do point out that Fifth Third suffers from weak gross profit margins, the bank's operating income margin of nearly 36% over the last twelve months as of Q1 2024 indicates effective cost management and operational efficiency. Moreover, the bank's long-term profitability is supported by the analysts' predictions that it will remain profitable this year.
For those seeking additional insights, there are more InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/FITB. By using the coupon code PRONEWS24, readers can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert analysis to inform their investment decisions.
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