Popular, Inc.’s BPOP board of directors approved a sequential hike in its quarterly cash dividend. The company declared a quarterly cash dividend of 70 cents per share, reflecting a rise of 12.9% from the prior payout. The dividend will be paid out on Jan. 2, 2025, to shareholders of record as of Dec. 6, 2024.

Prior to this, Popular hiked its dividend by 12.7% to 62 cents per share in November 2023. We believe that such disbursements highlight its operational strength and commitment to enhancing shareholders’ wealth.

Considering the last day’s closing price of $96.09, BPOP’s current dividend yield is 2.58%. Along with attracting investors, it represents a steady income stream. Also, the yield is significantly impressive compared with the industry’s average of 2.3%.

BPOP’s Share Repurchase Program

Popular has an ongoing share repurchase program, too. On July 24, 2024, the corporation announced the authorization for a common stock repurchase of up to $500 million. In the quarter ended Sept. 30, 2024, the corporation completed the repurchase of 599,096 shares of common stock for $58.8 million at an average price of $98.11 per share under the $500-million plan.  As of Sept. 30, 2024, $441 million has been available under the authorization.

Sustainability of Popular's Capital Distributions

BPOP enjoys a decent balance sheet position. As of Sept. 30, 2024, cash and due from banks and money market investments were $6.9 billion, while other liabilities were only $890 million. 

Further, at the end of the third quarter of 2024, its Common Equity Tier 1 ratio was 16.42%.

Popular witnessed earnings growth of 11.2% in the past three to five years, higher than the industry’s average of 7.3%. Also, earnings are expected to increase 3.6% this year and 23.8% in 2025.

Given its decent capital and liquidity positions,  BPOP is expected to sustain its current capital distribution activities and enhance shareholder value.

Shares of this Zacks Rank #3 (Hold) bank have rallied 36.6% over the past six months, underperforming the industry’s 50.2% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Other Stocks Announcing Dividend Hikes

In October 2024, Bank OZK OZK announced a quarterly cash dividend of 41 cents per share, an increase of 2.5% from the prior payout. The dividend was paid out on Oct. 18, 2024, to shareholders of record as of Oct. 11.

Prior to this, OZK increased its dividend by 2.6% to 40 cents per share in July 2024. 

In September 2024, City Holding Co. CHCO announced a quarterly cash dividend of 79 cents per share, a 10.5% hike from the prior payout. The dividend was out on Oct. 31, 2024, to shareholders of record as of Oct. 15.

Before the latest hike, CHCO increased its dividend by 10% to 71.5 cents per share in September 2023.

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