Texas-based Cullen/Frost Bankers, Inc. CFR has rewarded shareholders with a 4% dividend hike. The company raised its quarterly dividend by 2 cents to 53 cents per share, which will be paid on Jun 15, 2015, to shareholders of record on May 29.
With the latest hike, Cullen/Frost has raised its dividend for 22 straight years. Notably, the company increased its dividend by 2% to 51 cents per share in Apr 2014.
In addition, Cullen/Frost announced a new share repurchase authorization to buy back shares worth $100 million over a span of two years. The latest authorization replaces Cullen/Frost’s accelerated share repurchase program, which was implemented in 2013.
Further, along with its 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 fresh set of capital deployment measures follows Cullen/Frost’s strong performance in the first quarter of 2015. Reportedly, the company delivered earnings of $1.10 per share, beating the Zacks Consensus Estimate by a penny.
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.
Currently, Cullen/Frost carries a Zacks Rank #3 (Hold).
Investors interested in the banking space can consider stocks like SVB Financial Group SIVB, Fidelity Southern Corp. LION and UBS Group AG UBS. All these stocks sport a Zacks Rank #1 (Strong Buy).
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