BankUnited Rewards Shareholders With 6.8% Hike in Quarterly Dividend

Core Viewpoint - BankUnited, Inc. has increased its quarterly dividend to 31 cents per share, reflecting a 6.8% rise from the previous payout, with payment scheduled for April 30, 2025 [1] Dividend Growth - The company previously raised its dividend by 7.4% to 29 cents per share on February 26, 2024, marking five increases in the past five years and a five-year annualized dividend growth of 6.40% [2] - BankUnited's current payout ratio stands at 38% of earnings, with a dividend yield of 3.27% compared to the industry's yield of 3.55% based on a closing price of $35.47 [2] Capital Distribution Activities - BankUnited has an active share repurchase program, with an authorization for up to $150 million worth of shares initiated in September 2022, and as of December 31, 2024, $20.2 million remains for repurchase [3] - The company is expected to maintain efficient capital distribution activities due to its earnings strength, despite a high debt level of $3.6 billion against cash and cash equivalents of $491.1 million [4] Debt Management - Despite the elevated debt, BankUnited is positioned to meet its debt obligations in the near term, which is likely to support its long-term dividend payouts [5] Stock Performance - Over the past year, BankUnited shares have appreciated by 31.3%, outperforming the industry growth of 17.1% [6]