Cullen/Frost Hikes Dividend - Analyst Blog


In an attempt to enhance shareholder value, Cullen/Frost Bankers, Inc. 's ( CFR ) board of directors announced a 4% increase in its quarterly cash dividend on common stock. The new dividend of 50 cents will be paid on Jun 14 to shareholders of record as of May 31.

Additionally, the board declared a quarterly cash dividend of 44.79167 cents per share on its Non-cumulative Perpetual Series A Preferred Stock. This dividend will be paid on Jun 15 to shareholders of record as of May 31.

The latest boost in the company's dividend reflects its commitment to return value to shareholders through its strong cash generation capabilities. Cullen/Frost's current capital position may allow it to further enhance shareholder value.

Moreover, the company has healthy capital levels and liquidity. Tier 1 Risk-Based Capital Ratio and Total Risk-Based Capital Ratio as of Mar 31, 2013 stood at 14.23% and 15.44%, respectively.

Cullen/Frost has also been a regular dividend payer over the years. While many other banks suspended dividends during the economic crisis in 2008, Cullen/Frost not only continued to pay dividend, but increased the amount. Notably, over the past 18 years, the company has been consistently increasing its dividend.

Among other banks, Regions Financial Corp 's ( RF ) board of directors announced a threefold hike in its quarterly cash dividend on common stock, last week. The new dividend of 3 cents will be paid on Jul 1 to shareholders of record as of Jun 14.

Cullen/Frost currently carries a Zacks Rank #3 (Hold). Other better performing stocks include American National Bankshares Inc. ( AMNB ) and BNC Bancorp ( BNCN ). Both these carry a Zacks Rank #1 (Strong Buy).

AMER NATL BNKSH (AMNB): Free Stock Analysis Report

BNC BANCORP (BNCN): Free Stock Analysis Report

CULLEN FROST BK (CFR): Free Stock Analysis Report

REGIONS FINL CP (RF): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AMNB , BNCN , CFR , RF

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