Zions Lifts Quarterly Dividend by 5%: Can it Keep Up the Pace?

Core Insights - Zions Bancorporation (ZION) has announced a quarterly dividend of 45 cents per share, representing a 5% increase from the previous payout [1][8] - This marks the fourth dividend hike in the past five years, with an annualized growth rate of nearly 6% [1][8] - Zions has been actively repurchasing shares, with a plan to buy back up to $40 million worth of shares for 2025, completed in the first quarter [3] Financial Position - As of June 30, 2025, Zions' common equity tier 1 capital ratio was 11%, an increase from 10.6% in the prior year [4] - The company reported $7.04 billion in borrowed funds, with cash and due from banks totaling $780 million and total deposits at $73.8 billion [4] - Zions maintains strong long-term issuer ratings of BBB+ from Standard & Poor's and Fitch Ratings, and Baa2 from Moody's Investors Service [5] Market Comparison - In contrast to Zions, peers such as Comerica (CMA) and KeyCorp (KEY) have not announced any recent hikes in quarterly dividends [6][7] - Comerica currently pays a quarterly dividend of 71 cents per share, with only one increase in the past five years and an annualized growth rate of 1.31% [6] - KeyCorp pays a quarterly dividend of 20.5 cents per share, having increased dividends only twice in the past five years, with an annualized growth rate of 2.71% [7] Stock Performance - Over the past three months, Zions' shares have gained 12%, outperforming the industry's growth of 4.3% [10]