Raymond James RJF has announced enhanced capital distribution plans, including a dividend hike and a new share buyback program. 

RJF's board of directors has declared a quarterly cash dividend of 50 cents per share, representing an increase of 11.1% from the prior payout. The new dividend will be paid out on Jan. 16, 2025, to shareholders on record as of Jan. 2, 2025.

Raymond James has a record of regularly raising dividends over the last decade. Before the recent hike, the company announced a 7.1% increase in its quarterly dividend to 45 cents in December 2023.

RJF raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth rate of 18.1%. Currently, the company's payout ratio is 18% of earnings. Further, based on yesterday’s closing price of $165.76, its dividend yield stands at 1.09%.
 

Raymond James Financial, Inc. Dividend Yield (TTM)

Raymond James Financial, Inc. dividend-yield-ttm | Raymond James Financial, Inc. Quote

Also, Raymond James' board authorized the repurchase of its shares of common stock, aggregating to $1.5 billion, with no expiration date. This replaces the previous buyback program of $1.5 billion announced last December. Under the previous program, around $644 million remained as of Dec. 3, 2024.

Given a robust capital position and lower dividend payout ratio compared with its peers, the company is expected to maintain efficient capital distribution activities. Such moves are likely to drive shareholder confidence in the stock.

Backed by its robust liquidity position, Raymond James continues to prioritize growth through acquisitions, which has facilitated its expansion into Europe and Canada. In fiscal 2023, the company acquired Canada-based Solus Trust Company Limited, while in fiscal 2022, it acquired SumRidge Partners, TriState Capital Holdings and the U.K.-based Charles Stanley Group PLC. These deals and several past ones have positioned Raymond James well for future growth.

In the past three months, shares of Raymond James have soared 43.9%, outperforming the 24.5% rise of the industry.
 

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Currently, Raymond James sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Other Finance Stocks That Took Similar Steps

Orange County Bancorp, Inc. OBT announced a cash dividend of 25 cents per share, an increase of 8.7% from the prior payout. The dividend will be paid out on Dec. 16, 2024, to shareholders of record as of Dec. 4, 2024. 

Before this, OBT increased its dividend by 15% to 23 cents per share in November 2022. It has a five-year annualized dividend growth of 5.75%. At present, its payout ratio is 18% of its earnings.

CVB Financial Corp. CVBF authorized a share buyback plan of 10 million shares of the company’s common stock under the 2024 Repurchase Program. This authorization replaces the company’s previous share buyback program from 2022, which had the same authorization amount. 

David A. Brager, president and CEO of CVBF, said, “The approval of this share repurchase program reflects our robust capital position, consistent track record of producing quality earnings, and history of delivering long-term value to our shareholders.”

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