The PNC Financial Services Group, Inc.
) raised its quarterly common stock dividend by 9% to 48 cents
per share on Thursday. The dividend will be paid on May 5 to
shareholders of record as of Apr 15.
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The latest hike marks PNC Financial's 4th dividend increase since
2011, reflecting its commitment to enhance shareholder value with
its cash strength. Prior to this, the company had increased its
dividend by 10% (from 40 cents to 44 cents per share) in Jan
The latest dividend increase is part of PNC Financial's 2014
Capital Plan. The company's capital plan, which included dividend
hike and other capital action, was submitted to the Federal
Reserve in Jan 2014 and got approved.
PNC Financial has an impressive business model which enables it
to strengthen its balance sheet and efficiently deploy capital.
The company's endeavors to realign its branch network in an
economic manner, expense management initiatives, strong credit
quality, diversified revenue mix and sturdy capital ratios should
help it earn better going forward. However, tepid economic
recovery, a low interest-rate environment and regulatory pressure
could mar the company's growth.
At present, PNC Financial carries a Zacks Rank #3 (Hold). We
believe that announcement of the dividend hike will raise
Some better-ranked companies in the same sector include
Wells Fargo & Co.
The Bank of New York Mellon Corp.
). While BankUnited and Wells Fargo have a Zacks Rank #2 (Buy),
BNY Mellon has the same Zacks Rank as PNC Financial.