STAMFORD, Conn. - Webster Financial Corporation (NYSE: NYSE:WBS), the parent company of Webster Bank, has announced the declaration of its latest quarterly dividends for common and preferred stockholders.
The company's Board of Directors has declared a quarterly cash dividend of $0.40 per share on its common stock, which is scheduled for payment on November 12, 2024, to shareholders who are on record as of November 1, 2024.
In addition to the common stock dividend, Webster Financial has declared dividends on its preferred stock. The Series F Preferred Stock dividend amounts to $328.125 per share, which translates to $0.328125 per depositary share. Each depositary share represents a 1/1000th interest in a share of the Series F Preferred Stock. The payment date for this dividend is set for December 16, 2024, with a record date of December 1, 2024.
Furthermore, the Series G Preferred Stock dividend has been announced as $16.25 per share. This equates to $0.40625 per each depositary share, with 40 depositary shares representing one share of Series G Preferred Stock. Shareholders on record as of December 31, 2024, will receive this dividend on January 15, 2025.
Webster Financial Corporation, headquartered in Stamford, Connecticut, operates Webster Bank, a leading commercial bank in the Northeast. It offers a broad spectrum of digital and traditional financial services across three main business lines: Commercial Banking, Consumer Banking, and Healthcare Financial Services. With $79 billion in assets, Webster has a significant presence in the northeastern United States, extending from New York to Massachusetts, and operates in additional regions for specific business services. The bank is known for being a values-driven organization and is a member of the FDIC.
This financial update is based on a press release statement from Webster Financial Corporation.
In other recent news, Webster Financial reported strong third-quarter earnings with net interest income and margin trends exceeding expectations. The company's total asset growth reached $79 billion, with deposits growing by 3.6% and loans increasing by 0.7%. In addition, the firm's CET1 ratio exceeded its 11% target, while the efficiency ratio remained at 45%.
RBC Capital Markets raised Webster Financial's price target to $62 from $57, maintaining an Outperform rating. This adjustment follows Webster's robust third-quarter results and reflects confidence in the bank's strategy and execution.
The company anticipates a loan growth of 1% to 1.5% in Q4 and expects a 1% decline in deposits due to seasonal factors. Webster Financial also projects Q4 net interest income between $590 million and $600 million. Looking forward to 2025, the company forecasts a loan growth around 5% and is preparing for its assets to grow to $100 billion over the next 3-4 years.
InvestingPro Insights
Webster Financial Corporation's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 3.11% as of the latest available information. More importantly, an InvestingPro Tip highlights that Webster has maintained dividend payments for an impressive 38 consecutive years, underscoring its commitment to consistent shareholder returns.
Despite the challenging economic environment, Webster Financial appears to be maintaining its financial health. The company's P/E ratio stands at 11.8, suggesting a relatively attractive valuation compared to industry peers. Additionally, another InvestingPro Tip indicates that analysts predict the company will be profitable this year, which bodes well for its ability to sustain dividend payments.
It's worth noting that Webster's revenue for the last twelve months as of Q3 2024 was $2,368.95 million, with an operating income margin of 47.59% during the same period. These figures suggest a robust operational performance, supporting the company's ability to continue its dividend policy.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Webster Financial Corporation, providing a deeper understanding of the company's financial position and future prospects.
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