Fulton Financial (US:FULT) ZACKSยท2024-12-19 13:46Core Viewpoint - Fulton Financial Corporation has announced a sequential dividend increase and a new share repurchase program, reflecting its strong financial position and commitment to returning value to shareholders [1][3][6]. Dividend Announcement - The company declared a quarterly cash dividend of 18 cents per share, marking a 5.9% increase from the previous payout [1]. - Prior to this increase, the dividend was raised by 6.3% to 17 cents per share in December 2023 [2]. - Fulton Financial has raised its quarterly dividend eight times in the last five years, with a five-year annualized dividend growth of 6.7% [2]. - The current payout ratio stands at 38% of earnings, and the dividend yield is 3.46%, which is higher than the industry average of 2.41% [2]. Share Repurchase Program - The company announced a new repurchase program allowing for the repurchase of up to $125 million worth of shares, with $25 million allocated for preferred stock [3][5]. - The program will be effective from January 1, 2025, and will expire on December 31, 2025 [3]. - As of September 30, 2024, Fulton had $95 million remaining under its existing repurchase authorization [5]. Financial Position - As of September 30, 2024, Fulton Financial had total cash and cash equivalents of $1.4 billion, exceeding its total current debt of $1.1 billion [6]. - The company's trailing 12-month return on equity (ROE) is 11.33%, outperforming the industry average of 8.22%, indicating efficient use of shareholder funds [6]. Stock Performance - Over the past six months, Fulton Financial's shares have gained 23.6%, while the industry has grown by 33.3% [8].