Capitol Federal Financial, Inc.
) continues to be an asset for yield seeking investors. The
company's board of directors declared a special dividend of 25
cents per share. The dividend - TRUE BLUE® CAPITOL - will be paid
on Jun 27 to shareholders of record as of Jun 12.
Earlier, Capitol Federal used to pay the named dividend at the year
end. However, to maintain an even flow of return to shareholders
throughout the year, the company decided to declare the same to be
paid in June.
The total dividend disbursement for Capitol Federal stands at
nearly $34.6 million and will be funded by its banking subsidiary,
Capitol Federal Savings Bank. The subsidiary bank has consented to
infuse the parent company with capital distribution of $36.0
million before Jun 30.
Capitol Federal's timely dividend payouts are backed by its
earnings power and sound capital health. Apart from regular
quarterly dividend of 7.5 cents per share, the company also pays
out special named as well as a year-end dividend.
Notably, Capitol Federal remains focused on returning 100% of its
earnings to shareholders in fiscal 2014. The excess earnings that
will be left with the company after disbursing the regular payouts
will be returned to shareholders in form of a year-end dividend,
tentatively in December.
Additionally, Capitol Federal will continue its share buyback
activities. The company has nearly $72.4 million worth shares yet
to be repurchased under its present share buyback program.
The TRUE BLUE® CAPITOL dividend payout will increase Capitol
Federal's compensation expense by $1.1 million as the compensation
packages of certain employees of the firm include stock offerings
as well. However, this increase will be mitigated by an anticipated
decline of nearly 30-40 basis points in effective tax rate for
The efficient capital deployment activities on Capitol Federal's
front increase investors' confidence and in turn will propel the
stock price. Moreover, it reflects the steady capital position of
the company, and thereby enhances its market credibility.
Capitol Federal currently carries a Zacks Rank #3 (Hold). Some
better-ranked financial service providers include
Cape Bancorp, Inc.
). While Anchor Bancorp sports a Zacks Rank #1 (Strong Buy),
BankFinancial and Cape Bancorp hold a Zacks Rank #2 (Buy).
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