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BankUnited (BKU) Stock Up 2.3% on Dividend Hike Announcement
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Shares of BankUnited, Inc. (BKU - Free Report) are up 2.3% in response to the announcement of a dividend hike. The bank declared a quarterly cash dividend of 25 cents per share, marking a 9% increase from the prior payout. The dividend will be paid out on Apr 29 to shareholders of record on Apr 14.
Prior to this, BKU had announced a 10% dividend hike in February 2020. That was the first time the company had announced an increase to its quarterly dividend. Before that, the bank used to pay 21 cents per share as quarterly dividend.
Considering the last day’s closing price of $42.48, BankUnited’s dividend yield currently stands at 2.52%. Not only is the yield attractive for income investors, but also it represents a steady income stream.
Other than regular dividend payments, BKU has a share repurchase program in place. As of Dec 31, 2021, $26.5 million worth of shares were left to be repurchased. This February, the company's board of directors authorized the repurchase of up to an additional $150 million in shares, with no expiration date.
As of Dec 31, 2021, BankUnited had total debt worth $2.8 billion, higher than its cash and cash equivalent balance of $314.9 million. Yet, its times-interest-earned ratio of 5.7 and total debt/total capital of 38.5% at the end of 2021 reflect improvements. Supported by its earnings strength and a solid balance sheet, BankUnited is expected to continue with efficient capital deployment activities. Through this, it will keep enhancing shareholder value.
Over the past six months, shares of BKU have lost 1.1% compared with a 6.2% decline of the industry it belongs to.
Over the past few months, several banks have rewarded their shareholders with dividend hikes. Some of these are Northrim BanCorp (NRIM - Free Report) and Farmers National Banc Corp. (FMNB - Free Report) .
Northrim approved a regular quarterly cash dividend of 41 cents per share, up 7.9% from its prior payout.
The dividend was paid out on Mar 18 to its shareholders on record as of Mar 10, 2022. Prior to this, NRIM hiked its dividend in August 2021 by 2.7% to 38 cents.
Farmers National announced a dividend of 16 cents per share, representing a 14.3% sequential rise. The dividend will be paid out on Mar 31 to its shareholders on record as of Mar 11, 2022.
The recent dividend hike marks the seventh consecutive quarter of an increase by Farmers National. Before this, FMNB hiked its dividend by 27% to 14 cents per share.
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BankUnited (BKU) Stock Up 2.3% on Dividend Hike Announcement
Shares of BankUnited, Inc. (BKU - Free Report) are up 2.3% in response to the announcement of a dividend hike. The bank declared a quarterly cash dividend of 25 cents per share, marking a 9% increase from the prior payout. The dividend will be paid out on Apr 29 to shareholders of record on Apr 14.
Prior to this, BKU had announced a 10% dividend hike in February 2020. That was the first time the company had announced an increase to its quarterly dividend. Before that, the bank used to pay 21 cents per share as quarterly dividend.
Considering the last day’s closing price of $42.48, BankUnited’s dividend yield currently stands at 2.52%. Not only is the yield attractive for income investors, but also it represents a steady income stream.
Other than regular dividend payments, BKU has a share repurchase program in place. As of Dec 31, 2021, $26.5 million worth of shares were left to be repurchased. This February, the company's board of directors authorized the repurchase of up to an additional $150 million in shares, with no expiration date.
As of Dec 31, 2021, BankUnited had total debt worth $2.8 billion, higher than its cash and cash equivalent balance of $314.9 million. Yet, its times-interest-earned ratio of 5.7 and total debt/total capital of 38.5% at the end of 2021 reflect improvements. Supported by its earnings strength and a solid balance sheet, BankUnited is expected to continue with efficient capital deployment activities. Through this, it will keep enhancing shareholder value.
Over the past six months, shares of BKU have lost 1.1% compared with a 6.2% decline of the industry it belongs to.
Image Source: Zacks Investment Research
BankUnited currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Steps
Over the past few months, several banks have rewarded their shareholders with dividend hikes. Some of these are Northrim BanCorp (NRIM - Free Report) and Farmers National Banc Corp. (FMNB - Free Report) .
Northrim approved a regular quarterly cash dividend of 41 cents per share, up 7.9% from its prior payout.
The dividend was paid out on Mar 18 to its shareholders on record as of Mar 10, 2022. Prior to this, NRIM hiked its dividend in August 2021 by 2.7% to 38 cents.
Farmers National announced a dividend of 16 cents per share, representing a 14.3% sequential rise. The dividend will be paid out on Mar 31 to its shareholders on record as of Mar 11, 2022.
The recent dividend hike marks the seventh consecutive quarter of an increase by Farmers National. Before this, FMNB hiked its dividend by 27% to 14 cents per share.