In an attempt to enhance shareholder value,
Regions Financial Corp
) board of directors announced a threefold hike in its quarterly
cash dividend on common stock. The new dividend of 3 cents will
be paid on Jul 1, to shareholders of record as of Jun 14.
Additionally, the board declared a quarterly cash dividend of
$15.9375 per share (equivalent to approximately $0.398438 per
depositary share) associated with the outstanding shares of its
6.375% Non-Cumulative Perpetual Series A Preferred Stock.
Each outstanding share of the Series A Preferred Stock is
represented by depositary shares, each of which carries a 1/40th
interest in a share of Series A Preferred Stock. This will be
paid on Jun 15, to stockholders of record at the close of
business as of Jun 1.
These actions follow the Federal Reserve's approval of Regions'
2013 capital plan under the Comprehensive Capital Analysis and
Review (CCAR) in March. Earlier, following the approval of the
capital plan, the company authorized a new share repurchase
program of up to $350 million of its shares.
The latest boost in the company's dividend reflects its
commitment to return value to shareholders through its strong
cash generation capabilities. Regions' current capital position
may allow it to further enhance shareholder value. The company's
cash and due from banks was $1.8 billion as of Mar 31, 2013.
Regions' favorable funding mix, improved core business
performance and strategic initiatives are expected to yield
decent earnings in the near future. However, regulatory
restrictions and sluggish economic conditions remain matters of
Regions currently carries a Zacks Rank #2 (Buy). Other better
performing banks in the Southeast include
American National Bankshares Inc.
Crescent Financial Bancshares, Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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