PNC Financial Rewards Shareholders With a 6% Dividend Hike

Core Viewpoint - PNC Financial Services Group, Inc. has increased its quarterly cash dividend by 6% to $1.70 per share, reflecting the company's financial strength and confidence in its strategy and outlook [1][6]. Dividend Increase - The dividend will be paid on August 5, 2025, to shareholders of record as of July 15, 2025 [1]. - This increase follows the successful completion of the Federal Reserve's 2025 stress test, with PNC's projected CET1 ratio remaining well above the regulatory minimum [2][9]. - Prior to this increase, PNC raised its dividend by 3% to $1.60 per share in July 2024, with a five-year annualized dividend growth rate of 8.49% [3]. Financial Metrics - PNC's current payout ratio stands at 45% of its earnings, and its current dividend yield is 3.26%, significantly higher than the industry average of 1.87% [3][9]. - As of March 31, 2025, PNC had $38.4 billion in total available liquidity and $60.7 billion in total borrowed funds [7]. Capital Distribution Actions - PNC has an ongoing share repurchase program, with 40.5 million shares available for repurchase under a previously authorized plan of 100 million shares [6][9]. - The company anticipates maintaining a similar level of share repurchases in the upcoming quarters of 2025 [6]. Market Performance - PNC's shares have gained 23.7% over the past year, although this is lower than the industry's growth of 41.1% [8].