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United Bankshares (UBSI) Declares Dividend, Time to Buy?

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For dividend focused investors, United Bankshares Inc. (UBSI) could be a company to look at. United Bankshares, a regional bank that has consistently offered higher dividends than many of its competitors, announced Monday that it would be giving shareholders a 32 cents per share payout this quarter.

Based on Monday's closing price of $36.65 per share, this represents a dividend yield of 3.52%. The company also announced that the ex-dividend date will be September 9, with payouts going to investors on October 1.

Value Score

Although some investors target dividends, they shouldn't be the only factor when considering an investment. For those looking to find high dividend yields, a stock's value is probably another important metric to look at.

UBSI currently has a Value Style Score of "D". The company's P/E ratio and expected EPS growth are both lagging behind the industry average, and although its net margin beats the industry and S&P 500, the key metrics aren't showing UBSI as a great value pick right now.

Zacks Rank

It's also always important to keep the Zacks Rank in mind. Currently, UBSI has a Zacks Rank #3 (Hold). We've seen both positive and negative earnings estimate revisions within the last 60 days, and it doesn't seem like there is a clear consensus among analysts about the direction of this stock. While EPS is expected to grow 4% both this year and next year, the company has also disappointed in recent earnings reports, with an average surprise of -1.96% over the last four quarters.

Bottom Line

Although UBSI pays out a higher dividend than many other regional banks, several other key factors fall short. Those looking for big dividend yields may be better suited with a company that pays its investors out well and also has a favorable Zacks Rank and Value Style Score.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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