Hours after reporting its first quarter 2013 financial
Northern Trust Corporation
) in an attempt to impress its shareholders, announced an
increase in its quarterly dividend rate along with the approval
for a new share buyback program.
The new dividend rate has been fixed at 31 cents, an increase of
3.33% over the previous rate of 30 cents and will be paid on July
1, 2013 to shareholders of record as on June 7, 2013. In Mar
2012, the company made a similar announcement of a 7.1% rise in
dividend rate surging from 28 cents to 30 cents.
Also, Northern Trust Corporation received approval for a 12
million share buyback program that replaces its existing
Consistent dividend payments with occasional increases and share
buybacks have been Northern Trust Corporation's favoured mode of
rewarding its shareholders over time. If we steal a look into the
results of the quarter ended Mar 31, 2013, the company paid $73
million in dividends and repurchased 1.4 million shares worth $74
million at an average price of $53.08 per share.
Apart from the capital deployment actions of Northern Trust, a
brief discussion on the financial results of the company's first
quarter 2013 is also given below:
The company's earnings per share in the quarter came in at 71
cents, roughly 6% above the year-ago earnings but a cent behind
the Zacks Consensus Estimate.
Results on a year-over-year basis benefited from top-line
growth, partially offset by a rise in operating expenses.
Further, improving credit quality and strong capital ratios were
BB&T CORP (BBT): Free Stock Analysis
FIFTH THIRD BK (FITB): Free Stock Analysis
NORTHERN TRUST (NTRS): Free Stock Analysis
STATE ST CORP (STT): Free Stock Analysis
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The Zacks Consensus Estimate for Northern Trust currently stands
at 72 cents for the second quarter 2013, reflecting an increase
of 7.2% year over year. Earnings Estimate for 2013 and 2014 are
at $3.23 and $3.61, up 12.96% and 11.9%, respectively.
Northern Trust currently retains a Zacks Rank #3 (Hold). Among
the major regional banks,
Fifth Third Bancorp
) are scheduled to report on Apr 18, while
State Street Corporation
) will report on Apr 19.