The PNC Financial Services Group Inc.
) enhanced its quarterly common stock dividend by 10% to 44 cents
per share. The dividend will be paid on May 5, 2013, payable the
next business day, to shareholders of record as of Apr 16, 2013.
This reflects the company's commitment to return value to
shareholders with its strong cash generation capabilities. Prior
to this, the company increased its dividend by 14% (from 35 cents
to 40 cents per share) in Apr 2012.
The dividend increase is part of PNC Financial's 2013 Capital
Plan. The company's capital plan, including the dividend hike and
other capital actions were submitted to the Federal Reserve in
Jan 2013 as part of the Comprehensive Capital Analysis and Review
(CCAR) process. Having received no objection to its capital plan
from the Fed, the company increased its quarterly dividend.
In 2012, PNC Financial repurchased $190 million worth of common
shares and paid $820 million as common stock dividends. Cash and
due from banks exiting the year were $5.2 billion.
We believe that PNC Financial is well positioned to grow given
its diverse revenue mix, balance sheet strengthening efforts,
strategic acquisitions and solid capital levels. Capital
deployment activities also serve as positive catalysts. Yet, a
tepid economic recovery with a continued low interest rate
environment and increased regulatory headwinds are our concerns.
PNC Financial currently carries a Zacks Rank #3 (Hold). Among
Fifth Third Bancorp
Wells Fargo & Company
First Horizon National Corporation
) recently increased their capital redeploying efforts through
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