U.S. Bancorp (NYSE:USB) Declares Quarterly Dividend of $0.50

U.S. Bancorp (NYSE:USB) declared a quarterly dividend on Thursday, September 12th, RTT News reports. Investors of record on Monday, September 30th will be paid a dividend of 0.50 per share by the financial services provider on Tuesday, October 15th. This represents a $2.00 annualized dividend and a yield of 4.40%. The ex-dividend date is Monday, September 30th. This is a positive change from U.S. Bancorp’s previous quarterly dividend of $0.49.

U.S. Bancorp has raised its dividend by an average of 4.7% per year over the last three years and has increased its dividend annually for the last 14 consecutive years. U.S. Bancorp has a payout ratio of 47.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect U.S. Bancorp to earn $4.22 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 47.4%.

U.S. Bancorp Stock Performance

NYSE USB opened at $45.48 on Friday. U.S. Bancorp has a 1-year low of $30.47 and a 1-year high of $47.31. The company has a 50 day moving average of $44.53 and a 200-day moving average of $42.39. The company has a current ratio of 0.81, a quick ratio of 0.80 and a debt-to-equity ratio of 1.05. The firm has a market cap of $70.97 billion, a price-to-earnings ratio of 15.06, a PEG ratio of 3.06 and a beta of 1.04.

U.S. Bancorp (NYSE:USB) last released its quarterly earnings results on Wednesday, July 17th. The financial services provider reported $0.98 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.04. The firm had revenue of $6.87 billion during the quarter, compared to analysts’ expectations of $6.81 billion. U.S. Bancorp had a return on equity of 13.34% and a net margin of 12.55%. The business’s revenue was down 4.3% on a year-over-year basis. During the same period last year, the firm posted $1.12 EPS. On average, equities analysts forecast that U.S. Bancorp will post 3.86 earnings per share for the current fiscal year.

Insider Buying and Selling

In other U.S. Bancorp news, Director Aleem Gillani bought 10,000 shares of the firm’s stock in a transaction on Thursday, July 18th. The stock was purchased at an average cost of $44.99 per share, with a total value of $449,900.00. Following the completion of the purchase, the director now owns 10,000 shares in the company, valued at $449,900. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.23% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

USB has been the topic of a number of research analyst reports. DA Davidson increased their price objective on shares of U.S. Bancorp from $44.00 to $49.00 and gave the stock a “neutral” rating in a report on Thursday, July 18th. Evercore ISI boosted their price objective on shares of U.S. Bancorp from $45.00 to $48.00 and gave the stock an “in-line” rating in a research report on Tuesday, June 25th. Citigroup increased their price objective on U.S. Bancorp from $45.00 to $49.00 and gave the company a “neutral” rating in a research report on Thursday, July 18th. Jefferies Financial Group dropped their target price on U.S. Bancorp from $43.00 to $42.00 and set a “hold” rating for the company in a research report on Wednesday, July 3rd. Finally, Morgan Stanley raised their price target on U.S. Bancorp from $47.00 to $54.00 and gave the company an “equal weight” rating in a report on Tuesday, July 30th. Thirteen analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $48.18.

U.S. Bancorp declared that its board has initiated a share buyback plan on Thursday, September 12th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the financial services provider to purchase up to 7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

U.S. Bancorp Company Profile

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments.