Truist Financial Corp (NYSE:TFC), the product of a merger between BB&T and SunTrust, recently declared a dividend of $0.52 per share, payable on December 1, 2023. The company has been recognized for its consistent dividends since 1985 and annual increases since 2010, earning it the 'dividend achiever' status.
Operating in commercial banking, retail banking, investment banking, and insurance brokerage primarily in the Southeastern United States, TFC's 12-month trailing and forward dividend yield stands at 6.78%. This suggests an expectation of steady dividend payments over the next year. The company has demonstrated a three-year annual dividend growth rate of 5.40%, extending to 8.60% per year over five years and a decade-long growth rate of 10.10%.
As of September 30, 2023, TFC's payout ratio was recorded at 0.52, indicating that a substantial portion of earnings is retained for future growth and as a safety net against unforeseen downturns. This suggests sustainable dividends for the company. GuruFocus ranks TFC's profitability at 5 out of 10.
The company also scored a growth rank of 5 out of 10 from GuruFocus. TFC has managed to maintain a solid revenue model that combines revenue per share with a three-year growth rate averaging approximately 3.70% per year. Despite this steady performance, it still lags behind about 65.08% of global competitors.
Over the past three years, TFC's earnings have seen an average increase of about 7.20% per year. However, this growth rate still underperforms about 53.93% of global competitors.
InvestingPro Insights
In line with the article's focus on Truist Financial Corp's (TFC) consistent dividends and overall financial performance, InvestingPro provides some key insights.
InvestingPro Tips highlight TFC's high earnings quality, with free cash flow exceeding net income, a sign of financial stability. The company has not only maintained but also raised its dividend for 9 consecutive years, underscoring its commitment to rewarding shareholders. This aligns with the article's point on TFC's 'dividend achiever' status.
InvestingPro's real-time data further enriches our understanding of TFC's financial position. The company's market cap stands at a robust 41.0B USD, and its P/E ratio is a competitive 7.68, suggesting that TFC is reasonably priced relative to its earnings. The data also reveals a notable return on assets in the last twelve months as of Q3 2023, at 1.05%, which is a key measure of TFC's profitability.
For those seeking a deeper dive into TFC's financials and performance, InvestingPro offers a wealth of additional tips and metrics.
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