) board of directors quadrupled its quarterly dividend on its
outstanding common stock. The increased dividend stands at 4
cents per share, a staggering 300% hike from the previous
dividend of 1 cent per share. The increased dividend will be paid
on May 30, to shareholders of record as of May 23.
BBCN BANCORP (BBCN): Free Stock Analysis
BOFI HLDG INC (BOFI): Free Stock Analysis
CU BANCORP CA (CUNB): Free Stock Analysis
ZIONS BANCORP (ZION): Free Stock Analysis
To read this article on Zacks.com click here.
Concurrently, the board of directors also declared quarterly
dividends on the company's Series A, C, F and G perpetual
preferred shares. The dividends on these shares will be paid on
Jun 15 to shareholders of record as of Jun 1.
Zions' massive dividend hike can be viewed as a strategy to boost
investors' value following the setback related to the Federal
Reserve's 2013 Capital Plan and Review (CapPR) in March. The Fed
approved certain strategic actions of the company's capital and
Zions was required to re-submit an amended capital plan.
Even though the 2013 capital plan was consistent with Zions'
strategy to rationalize its balance sheet and reduce expenses, it
did not seem explicitly attractive as it had hardly any scope for
enhancing shareholder value.
Zions has been a consistent dividend paying stock over the years.
But the latest financial crisis led to a severely truncated
disbursement. In the mid-2008s, the company paid a dividend of 43
cents per share. However, barely 12 months later, it was chopped
down to a penny. The company had maintained the same dividend
Zions currently carries a Zacks Rank #3 (Hold). However, other
banking stocks in the West that are performing better than Zion
BofI Holding, Inc.
BBCN Bancorp, Inc.
). All these companies carry a Zacks Rank #2 (Buy).