Fifth Third Bancorp (NASDAQ:FITB) Raises Dividend to $0.42 Per Share

Fifth Third Bancorp (NASDAQ:FITB) announced a quarterly dividend on Thursday, September 17th. Stockholders of record on Wednesday, September 30th will be paid a dividend of 0.42 per share by the financial services provider on Thursday, October 15th. This represents a c) annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Wednesday, September 30th. This is a 5.0% increase from Fifth Third Bancorp’s previous quarterly dividend of $0.40.

Fifth Third Bancorp has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 14 consecutive years. Fifth Third Bancorp has a payout ratio of 40.0% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Fifth Third Bancorp to earn $4.96 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 32.3%.

Fifth Third Bancorp Stock Performance

Shares of FITB stock opened at $53.27 on Friday. The company has a market capitalization of $48.31 billion, a price-to-earnings ratio of 17.87, a P/E/G ratio of 1.09 and a beta of 0.89. Fifth Third Bancorp has a 1-year low of $40.04 and a 1-year high of $59.50. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.59. The stock’s fifty day simple moving average is $56.12 and its 200-day simple moving average is $52.17.

Fifth Third Bancorp (NASDAQ:FITB) last announced its quarterly earnings data on Friday, July 17th. The financial services provider reported $0.83 EPS for the quarter, missing analysts’ consensus estimates of $0.84 by ($0.01). The business had revenue of $3.26 billion for the quarter, compared to analyst estimates of $3.24 billion. Fifth Third Bancorp had a return on equity of 12.39% and a net margin of 15.89%.The company’s revenue was up 45.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.88 earnings per share. On average, sell-side analysts predict that Fifth Third Bancorp will post 4.1 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fifth Third Bancorp

Several large investors have recently added to or reduced their stakes in the company. D.A. Davidson & CO. lifted its holdings in Fifth Third Bancorp by 69.7% during the 1st quarter. D.A. Davidson & CO. now owns 50,783 shares of the financial services provider’s stock valued at $2,359,000 after purchasing an additional 20,862 shares during the last quarter. Keybank National Association OH raised its stake in shares of Fifth Third Bancorp by 33.2% in the first quarter. Keybank National Association OH now owns 85,781 shares of the financial services provider’s stock worth $3,985,000 after acquiring an additional 21,365 shares during the last quarter. Munich Reinsurance Co Stock Corp in Munich bought a new stake in shares of Fifth Third Bancorp during the second quarter valued at approximately $4,222,000. Bank of America Corp DE bought a new position in Fifth Third Bancorp in the 2nd quarter valued at $995,717,000. Finally, Geode Capital Management LLC raised its position in shares of Fifth Third Bancorp by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 18,197,466 shares of the financial services provider’s stock worth $848,672,000 after acquiring an additional 96,656 shares during the last quarter. Institutional investors and hedge funds own 83.79% of the company’s stock.

About Fifth Third Bancorp

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. Through its principal subsidiary, Fifth Third Bank, the company provides banking and financial services to individuals, businesses, governments and institutional clients.

Its offerings include checking and savings accounts, mortgages, home equity loans, consumer lending, credit cards, commercial loans, treasury management and other business banking services. Fifth Third also provides wealth management, investment advisory, brokerage, trust and asset-management services, as well as capital markets and investment banking capabilities for corporate and institutional customers.

Fifth Third Bank operates through a branch and digital banking network primarily serving communities across the Midwest and Southeast, including markets in Ohio, Michigan, Florida, Georgia, Illinois, Indiana, Kentucky, North Carolina, South Carolina, Tennessee and West Virginia.