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Cullen/Frost Declares 5.6% Dividend Hike for Shareholders
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Cullen/Frost Bankers, Inc. (CFR - Free Report) board of directors approved a 5.6% hike in the company’s quarterly common stock dividend. The revised quarterly dividend now comes in at 57 cents per share compared with the previous figure of 54 cents. The dividend will be paid on Jun 15 to shareholders of record as of May 31, 2017.
This marks the 24th consecutive annual dividend raise for this commercial and consumer banking services provider, reflecting its commitment to return value to shareholders with solid cash generation capabilities. Prior to this hike, the company had raised its dividend by 1.9% (from 53 cents to 54 cents per share) in Apr 2016.
Further, along with the common stock dividend, the company will also pay a per share dividend of 34 cents on its Noncumulative Perpetual Preferred Stock, Series A, which trades on the NYSE under the symbol "CFR PrA."
The capital deployment measures follow Cullen/Frost’s strong performance in first-quarter 2017. Reportedly, the company recorded a positive earnings surprise of 4.92%. The company reported earnings per share of $1.28, beating the Zacks Consensus Estimate of $1.22. Moreover, the reported figure was up from $1.07 per share recorded in the year-ago quarter.
While Cullen/Frost’s efforts to enhance its shareholders’ value are encouraging, we also remain optimistic regarding its potential to continue the same in the upcoming quarters, driven by its strong cash generation capabilities.
Considering Friday’s closing price of $94.39 per share, the dividend yield is currently valued at 2.4%.
Investors interested in this Zacks Rank #3 (Hold) stock can have a look at this bank’s fundamentals and growth prospects.
Revenue Growth: Organic growth remains a key strength at Cullen/Frost, as displayed by its revenue growth story. Revenues grew at a CAGR of 5.9%, over the last five years (2012–2016), with the trend continuing in first-quarter 2017.
The company’s projected sales growth (F1/F0) of 17.3% (as against the nil industry average) indicates constant upward momentum in revenues.
Strong Leverage: Cullen/Frost’s debt/equity ratio is valued at 0.08 compared to the industry average of 0.57, indicating lower debt burden relative to the industry. It highlights the financial stability of the company even in an unstable economic environment.
Stock is Undervalued: Cullen/Frost has a P/E ratio and P/B ratio of 17.99x and 2.07x compared to the S&P 500 average of 18.82x and 3.30x, respectively. Based on these ratios, the stock seems undervalued.
Share Price Movement: Cullen/Frost’s shares gained 28.3% over the past six months compared with 26.2% growth recorded in the Zacks categorized Southwest Banks industry.
Stocks to Consider
Shares of BancFirst Corporation (BANF - Free Report) , which sports a Zacks Rank #1 (Strong Buy), gained over 37.9% over the past six months. The Zacks Consensus Estimate for the stock moved higher over the last 30 days, for 2017. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of First Foundation Inc. (FFWM - Free Report) gained over 31% over the past six months. The Zacks Consensus Estimate for the stock revised upward over the last 30 days, for 2017. It boasts a Zacks Rank #1.
Shares of First Financial Bankshares, Inc. (FFIN - Free Report) gained over 13% over the past six months. The Zacks Consensus Estimate for the stock climbed over the last 30 days, for 2017. It carries a Zacks Rank #2 (Buy).
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Cullen/Frost Declares 5.6% Dividend Hike for Shareholders
Cullen/Frost Bankers, Inc. (CFR - Free Report) board of directors approved a 5.6% hike in the company’s quarterly common stock dividend. The revised quarterly dividend now comes in at 57 cents per share compared with the previous figure of 54 cents. The dividend will be paid on Jun 15 to shareholders of record as of May 31, 2017.
This marks the 24th consecutive annual dividend raise for this commercial and consumer banking services provider, reflecting its commitment to return value to shareholders with solid cash generation capabilities. Prior to this hike, the company had raised its dividend by 1.9% (from 53 cents to 54 cents per share) in Apr 2016.
Further, along with the common stock dividend, the company will also pay a per share dividend of 34 cents on its Noncumulative Perpetual Preferred Stock, Series A, which trades on the NYSE under the symbol "CFR PrA."
The capital deployment measures follow Cullen/Frost’s strong performance in first-quarter 2017. Reportedly, the company recorded a positive earnings surprise of 4.92%. The company reported earnings per share of $1.28, beating the Zacks Consensus Estimate of $1.22. Moreover, the reported figure was up from $1.07 per share recorded in the year-ago quarter.
While Cullen/Frost’s efforts to enhance its shareholders’ value are encouraging, we also remain optimistic regarding its potential to continue the same in the upcoming quarters, driven by its strong cash generation capabilities.
Considering Friday’s closing price of $94.39 per share, the dividend yield is currently valued at 2.4%.
Investors interested in this Zacks Rank #3 (Hold) stock can have a look at this bank’s fundamentals and growth prospects.
Revenue Growth: Organic growth remains a key strength at Cullen/Frost, as displayed by its revenue growth story. Revenues grew at a CAGR of 5.9%, over the last five years (2012–2016), with the trend continuing in first-quarter 2017.
The company’s projected sales growth (F1/F0) of 17.3% (as against the nil industry average) indicates constant upward momentum in revenues.
Strong Leverage: Cullen/Frost’s debt/equity ratio is valued at 0.08 compared to the industry average of 0.57, indicating lower debt burden relative to the industry. It highlights the financial stability of the company even in an unstable economic environment.
Stock is Undervalued: Cullen/Frost has a P/E ratio and P/B ratio of 17.99x and 2.07x compared to the S&P 500 average of 18.82x and 3.30x, respectively. Based on these ratios, the stock seems undervalued.
Share Price Movement: Cullen/Frost’s shares gained 28.3% over the past six months compared with 26.2% growth recorded in the Zacks categorized Southwest Banks industry.
Stocks to Consider
Shares of BancFirst Corporation (BANF - Free Report) , which sports a Zacks Rank #1 (Strong Buy), gained over 37.9% over the past six months. The Zacks Consensus Estimate for the stock moved higher over the last 30 days, for 2017. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of First Foundation Inc. (FFWM - Free Report) gained over 31% over the past six months. The Zacks Consensus Estimate for the stock revised upward over the last 30 days, for 2017. It boasts a Zacks Rank #1.
Shares of First Financial Bankshares, Inc. (FFIN - Free Report) gained over 13% over the past six months. The Zacks Consensus Estimate for the stock climbed over the last 30 days, for 2017. It carries a Zacks Rank #2 (Buy).
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>