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M&T Bank (MTB) Rewards Shareholders With 25% Dividend Hike
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As part of its 2018 capital plan (approved by the Federal Reserve), M&T Bank Corporation’s (MTB - Free Report) board of directors has announced a 25% hike in the company’s quarterly common stock dividend. The revised quarterly dividend now comes in at $1.00 per share compared with the previous figure of 80 cents. This dividend will be paid on Sep 28 to shareholders of record as of Sep 4, 2018.
Since the 2008 financial crisis, M&T Bank has raised its dividend thrice. From paying 70 cents a share as quarterly dividend during the financial crisis, the company has come a long way in displaying its capital strength. Prior to this hike, it had raised its dividend by 7% (from 75 cents to 80 cents per share) in May 2018.
Considering Tuesday’s closing price of $177.08 per share, the dividend yield is currently valued at 2.26%.
Alongside, the company has an impressive share-repurchase plan. Its 2018 capital plan includes share buyback of up to $1.8 billion, over the four-quarter period, effective July 2018.
Investors interested in this Zacks Rank #2 (Buy) stock can have a look at the bank’s fundamentals and growth opportunities.
Revenue Growth: M&T Bank continues to make steady progress toward bolstering its revenues. Since 2008, the company has recorded a continued rise in net interest income. Over the last five years (ended 2017), it has witnessed a compound annual growth rate (CAGR) of nearly 9%, with the trend continuing into first-half 2018 as well.
The company’s projected sales growth (F1/F0) of 5.11% (compared with the industry average of 5.06%) indicates constant upward momentum in revenues.
Earnings Per Share Strength: Earnings are anticipated to display an upswing in the near term, as the company’s projected EPS growth (F1/F0) is 37.7% compared to the industry average rate of 30.7%. Also, M&T Bank pulled off an average positive earnings surprise of 3.81%, over the trailing four quarters.
Inorganic Growth Routes: Given its robust liquidity position, M&T Bank is well poised to grow on the back of acquisitions. The company’s accomplishment of several major acquisitions in and out of the United States, over the past several years, highlights its impressive growth momentum. Completion of its merger with Hudson City in November 2015 expanded the company’s retail branch network in the Eastern United States, with access to 135 Hudson branches, situated primarily in New Jersey. Further, product and balance-sheet diversification, stemming from this acquisition, will likely support the company’s top line.
Strong Leverage: M&T Bank’s debt/equity ratio is valued at 0.58 compared to the industry average of 0.92, indicating relatively lower debt burden. It highlights the financial stability of the company even in adverse economic conditions.
Superior Return on Equity (ROE): M&T Bank’s ROE of 11.8%, as compared with the industry average of 11.6%, underlines the company’s commendable position over its peers.
Stock is Undervalued:The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Impressive Price Performance: Shares of M&T Bank have jumped 3.6% so far, this year, outperforming the 1.4% gain of the industry.
Other Stocks to Consider
SunTrust Banks, Inc. (STI - Free Report) has been witnessing upward estimate revisions, for the last 60 days. Year to date, the company’s share price has been up more than 15%. It currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions, for the last 60 days. Additionally, the stock climbed nearly 14.5%, year to date. It sports a Zacks Rank #1, at present.
Northern Trust Corporation (NTRS - Free Report) has been witnessing upward estimate revisions, for the last 60 days. Also, this Zacks #2 Ranked company’s shares have risen nearly 9.1%, year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
M&T Bank (MTB) Rewards Shareholders With 25% Dividend Hike
As part of its 2018 capital plan (approved by the Federal Reserve), M&T Bank Corporation’s (MTB - Free Report) board of directors has announced a 25% hike in the company’s quarterly common stock dividend. The revised quarterly dividend now comes in at $1.00 per share compared with the previous figure of 80 cents. This dividend will be paid on Sep 28 to shareholders of record as of Sep 4, 2018.
Since the 2008 financial crisis, M&T Bank has raised its dividend thrice. From paying 70 cents a share as quarterly dividend during the financial crisis, the company has come a long way in displaying its capital strength. Prior to this hike, it had raised its dividend by 7% (from 75 cents to 80 cents per share) in May 2018.
Considering Tuesday’s closing price of $177.08 per share, the dividend yield is currently valued at 2.26%.
Alongside, the company has an impressive share-repurchase plan. Its 2018 capital plan includes share buyback of up to $1.8 billion, over the four-quarter period, effective July 2018.
Investors interested in this Zacks Rank #2 (Buy) stock can have a look at the bank’s fundamentals and growth opportunities.
Revenue Growth: M&T Bank continues to make steady progress toward bolstering its revenues. Since 2008, the company has recorded a continued rise in net interest income. Over the last five years (ended 2017), it has witnessed a compound annual growth rate (CAGR) of nearly 9%, with the trend continuing into first-half 2018 as well.
The company’s projected sales growth (F1/F0) of 5.11% (compared with the industry average of 5.06%) indicates constant upward momentum in revenues.
Earnings Per Share Strength: Earnings are anticipated to display an upswing in the near term, as the company’s projected EPS growth (F1/F0) is 37.7% compared to the industry average rate of 30.7%. Also, M&T Bank pulled off an average positive earnings surprise of 3.81%, over the trailing four quarters.
Inorganic Growth Routes: Given its robust liquidity position, M&T Bank is well poised to grow on the back of acquisitions. The company’s accomplishment of several major acquisitions in and out of the United States, over the past several years, highlights its impressive growth momentum. Completion of its merger with Hudson City in November 2015 expanded the company’s retail branch network in the Eastern United States, with access to 135 Hudson branches, situated primarily in New Jersey. Further, product and balance-sheet diversification, stemming from this acquisition, will likely support the company’s top line.
Strong Leverage: M&T Bank’s debt/equity ratio is valued at 0.58 compared to the industry average of 0.92, indicating relatively lower debt burden. It highlights the financial stability of the company even in adverse economic conditions.
Superior Return on Equity (ROE): M&T Bank’s ROE of 11.8%, as compared with the industry average of 11.6%, underlines the company’s commendable position over its peers.
Stock is Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Impressive Price Performance: Shares of M&T Bank have jumped 3.6% so far, this year, outperforming the 1.4% gain of the industry.
Other Stocks to Consider
SunTrust Banks, Inc. (STI - Free Report) has been witnessing upward estimate revisions, for the last 60 days. Year to date, the company’s share price has been up more than 15%. It currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions, for the last 60 days. Additionally, the stock climbed nearly 14.5%, year to date. It sports a Zacks Rank #1, at present.
Northern Trust Corporation (NTRS - Free Report) has been witnessing upward estimate revisions, for the last 60 days. Also, this Zacks #2 Ranked company’s shares have risen nearly 9.1%, year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>