Fifth Third Bancorp
) has announced a cash dividend of 13 cents per common share for
second-quarter 2014. This marks an 8.3% hike from 12 cents per
common share that the company last paid to its shareholders. The
new dividend is payable on Jul 17, to shareholders of record as of
Fifth Third reported first-quarter earnings of 36 cents per share,
which missed the Zacks Consensus Estimate by 12.2%. However, the
Cincinnati, OH-based major regional bank did not lag in capital
deployment activities and repurchased 8 million common shares.
It also cleared the stress test in the reported period and
subsequently got its capital plan approved by the Federal Reserve,
under the 2014 Comprehensive Capital Analysis and Review. The
capital plan included a raise in the company's quarterly common
stock dividend to 13 cents per share.
Close on the heels of the approval of its capital plan, Fifth Third
entered into a deal to partially sell its stake in
). This divestiture is expected to generate a pre-tax gain of
nearly $125 million in second-quarter 2014. The company is expected
to utilize the proceeds to further repurchase its common shares.
The latest hike in dividend is in sync with its capital plan and
stable capital position.
Currently, Fifth Third carries a Zacks Rank #3 (Hold). Some
better-ranked finance stocks include
CVB Financial Corp.
Western Alliance Bancorporation
). Both these stocks carry a Zacks Rank #1 (Strong Buy).
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