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Is Raymond James' Capital Distribution Policy Sustainable?
ZACKS· 2025-09-29 16:50
Key Takeaways Raymond James raised its dividend 11.1% in December 2024, marking a decade of steady increases.RJF has a $1.5B buyback plan, with $749M available as of June 30, 2025.RJF holds $9.20B in cash, supported by solid credit ratings and stable outlooks.Raymond James Financial (RJF) has an efficient capital distribution strategy, which focuses on dividend increases and share repurchases, while maintaining financial flexibility for organic and inorganic growth. The company has consistently increased it ...
Carlisle Announces Share Repurchase Authorization for 7.5M Shares
ZACKS· 2025-09-04 16:15
Core Viewpoint - Carlisle Companies Incorporated (CSL) has announced a new share buyback program, authorizing the repurchase of up to 7.5 million shares to enhance shareholder returns [1][8]. Summary by Sections Share Buyback Program - The new buyback program adds to the existing plan, which has approximately 1.2 million shares remaining for repurchase as of August 2025 [2][8]. - The buybacks can be executed in the open market, through privately negotiated transactions, or block trades, with no expiration date set for the new program [2][8]. Financial Performance - In the first half of 2025, Carlisle repurchased shares worth $700 million, maintaining stability year over year [3]. - The company paid dividends totaling $88.3 million during the same period, reflecting an 8.1% increase year over year [3]. - In August 2025, Carlisle raised its dividend by 10% to $1.10 per share [3]. Market Position and Challenges - Carlisle has a market capitalization of $16.1 billion and currently holds a Zacks Rank of 4 (Sell) [4]. - The Weatherproofing Technologies segment is facing challenges due to weakness in the residential construction market, with a 2% year-over-year revenue decline in Q2 2025 [4]. - Over the past three months, the company's shares have decreased by 0.9%, contrasting with the industry's growth of 0.8% [5]. - The Zacks Consensus Estimate for CSL's 2025 earnings is $20.76 per share, which is a 6.6% decrease from the figure reported 60 days ago [5].
Popular Hikes Dividend: Sustainable Strategy or Short-Term Boost?
ZACKS· 2025-08-25 19:06
Core Insights - Popular, Inc. (BPOP) has demonstrated a strong commitment to returning value to shareholders through consistent dividend increases and share repurchase programs, reflecting confidence in its earnings and liquidity position [1][8]. Dividend Performance - Popular declared a quarterly cash dividend of 75 cents per share, representing a 7.1% increase from the previous payout [1][8]. - This follows a 12.9% increase in November 2024, bringing the total dividend hikes to five over the past five years, with an annualized growth rate of 12.77% [2]. - The current dividend yield stands at 2.3%, based on the last closing price of $121.90, supported by a prudent payout ratio of 27% [2]. Share Repurchase Strategy - In August 2024, Popular authorized a $500 million share repurchase program, with $32.8 million remaining as of June 30, 2025 [4]. - The company expanded its repurchase authorization by another $500 million in July 2025, reinforcing its commitment to capital deployment [4][8]. Liquidity Position - As of June 30, 2025, Popular's total debt was $1.4 billion, significantly lower than its liquidity balance of $6.8 billion, indicating a robust liquidity profile [5]. - This strong liquidity position is expected to support ongoing capital deployment activities, enhancing shareholder value [5][8]. Market Performance - BPOP shares have appreciated by 22.6% over the past year, outperforming the industry growth of 7.6% [9].
Will Goldman's Strong Liquidity Aid Its Capital Distribution Strategy?
ZACKS· 2025-08-12 15:51
Core Insights - Goldman Sachs has a robust balance sheet with cash and cash equivalents of $153 billion and total unsecured debt of $349 billion as of June 30, 2025, with only $69 billion in near-term borrowings [1][9] Financial Strength - The company holds investment-grade long-term debt ratings of A/A2/BBB+ and a stable outlook from major rating agencies, indicating strong creditworthiness and the ability to meet debt obligations during economic downturns [2] - Goldman Sachs has demonstrated impressive capital distribution activities, raising its dividend by 33.3% to $4 per share post-2025 stress test, with an annualized dividend growth rate of 22.04% over the past five years and a payout ratio of 26% [3][9] Share Repurchase Programs - The company has an active share repurchase plan, with a $40 billion program approved in Q1 2025 and an earlier $30 billion program announced in February 2023, leaving $40.6 billion available under authorization by the end of Q2 2025 [4] Competitive Positioning - Compared to JPMorgan and Morgan Stanley, Goldman Sachs maintains a strong liquidity position, with JPMorgan having total debt of $485.1 billion and Morgan Stanley holding long-term debt of $320.1 billion [5][6] Price Performance and Valuation - Goldman Sachs shares have increased by 26.8% year-to-date, outperforming the industry growth of 22.2% [7] - The company trades at a forward price-to-earnings (P/E) ratio of 14.45X, slightly above the industry average of 14.39X [11] Earnings and Sales Estimates - The Zacks Consensus Estimate indicates year-over-year earnings growth of 12.6% for 2025 and 14.9% for 2026, with sales growth of 6.3% for 2025 and 6.5% for 2026, both estimates revised upward in the past 30 days [14]
Marsh & McLennan Boosts Dividend by 10% to 90 Cents Per Share
ZACKS· 2025-07-10 18:01
Core Insights - Marsh & McLennan Companies, Inc. (MMC) has approved a 10% increase in its quarterly dividend, raising it to 90 cents per share from 81.5 cents, aimed at enhancing shareholder value [1][9] - This increase marks the 16th consecutive year of dividend growth for MMC, with a compound annual growth rate (CAGR) of 9.5% over the past 16 years [2][3] Dividend and Shareholder Returns - The new dividend will be distributed on August 15, 2025, to shareholders recorded as of July 24, 2025 [2] - MMC has a history of consistent dividend increases, having raised its quarterly dividend by 15% in the previous year and maintaining regular payments since 2006 [3] Capital Deployment Strategy - In addition to dividends, MMC returns capital to shareholders through share repurchases, having bought back approximately 4.3 million shares for $900 million in 2024 and 1.3 million shares for $300 million in Q1 2025 [4][9] - The company plans to deploy around $4.5 billion in 2025 through dividends, acquisitions, and share repurchases [5][9] Financial Position and Performance - MMC's strong financial position is supported by adequate cash reserves of $1.6 billion as of March 31, 2025, and a 5.6% increase in free cash flow after dividends compared to the previous year [6] - The return on equity for MMC stands at 33.1%, surpassing the industry average of 27.6% [7] Stock Performance - Over the past six months, MMC shares have increased by 1.2%, while the industry has seen a decline of 1.4% [8]
Citigroup Hits 52-Week High: How to Approach the Stock Now?
ZACKS· 2025-07-08 17:15
Core Viewpoint - Citigroup Inc. shares reached a new 52-week high of $88.82, closing at $87.60, with a 35.3% increase over the past year, compared to the industry's 41.2% growth [1][9] Financial Performance - Citigroup passed the Federal Reserve's 2025 stress test, indicating strong capital to absorb significant losses [4] - The company plans to increase its quarterly dividend by 7% to 60 cents per share starting in Q3 2025, pending board approval [5] - Citigroup's current dividend yield is 2.56%, higher than Wells Fargo's 1.94% and Bank of America's 2.14% [6] Capital Management - Citigroup has a $20 billion stock repurchase program, with $1.75 billion in shares bought back in Q1 2025 and a similar target for Q2 [7] - As of March 31, 2025, Citigroup's cash and investments totaled $761 billion, with total debt at $317.5 billion, indicating a strong liquidity position [8] Business Restructuring - The company is simplifying its governance structure, reducing management layers from 13 to eight, and has announced plans to eliminate 20,000 jobs over two years, saving $2-2.5 billion annually by 2026 [10][11] - Citigroup is exiting consumer banking operations in 14 markets, having successfully exited in nine countries, which is expected to free up capital for higher-return segments [12][16] Revenue Growth - Citigroup's net interest income (NII) has a CAGR of 8.4% from 2020 to 2024, with expectations of a 2-3% increase in 2025 [16][17] - The company is expanding its presence in private credit through partnerships, including a $25 billion direct lending initiative with Apollo Global Management [18][19] Estimates and Valuation - Consensus estimates suggest a 3.5% and 3.2% increase in sales for 2025 and 2026, respectively, with earnings expected to rise by 23.2% and 27.6% [20] - Citigroup's current P/E ratio is 10.46x, lower than the industry average of 15.06x, indicating a potentially undervalued stock [22][25] Strategic Outlook - Citigroup's strong capital levels, operational efficiency improvements, and strategic exits position it for long-term growth, despite rising expenses and a complex overhaul plan [26][27]
Goldman Shares Skyrocket to All-Time High: Here's What's Behind It
ZACKS· 2025-07-01 14:10
Core Insights - Goldman Sachs Group (GS) shares reached an all-time high of $714.30 after passing the 2025 Federal Reserve stress test, allowing for capital returns to shareholders through dividends and share repurchases [1][11]. Financial Performance - The 2025 stress test simulated a severe recession with a 10% unemployment rate, a 33% drop in home prices, and a 50% decline in equity markets, resulting in aggregate simulated losses exceeding $550 billion; however, banks remained well-capitalized with CET1 ratios significantly above the 4.5% minimum [2]. - Goldman Sachs' projected CET1 capital ratio is 12.3%, indicating strong capital reserves to absorb potential losses during a recession [3]. Capital Distribution - GS currently offers a 1.7% dividend yield with a payout ratio of 28%. In July 2024, the quarterly dividend was raised by 9.1% to $3 per share, with expectations for another increase this year due to strong capital position [3]. - The board approved a share repurchase program for up to $40 billion in Q1 2025, in addition to a previously announced $30 billion program with no expiration date. As of the end of Q1 2025, GS had $43.6 billion in shares available for repurchase [4]. Liquidity Position - As of March 31, 2025, GS had cash and cash equivalents totaling $167 billion, with $71 billion in near-term borrowings, indicating strong liquidity to support shareholder returns [5]. Peer Comparison - Other banks, including JPMorgan and Bank of America, also passed the 2025 stress test, with JPMorgan's CET1 ratio at 14.2% and Bank of America's at 10.2%, both well above the required minimum [6]. - Bank of America offers a 2.20% dividend yield, while JPMorgan has a yield of 1.93%. Both banks have also announced significant dividend increases and share repurchase programs, reflecting their strong capital positions [7][8]. Stock Performance and Valuation - GS shares have increased by 24.8% year-to-date, outperforming the industry growth of 19.2% [9]. - The stock trades at a forward P/E ratio of 14.99X, above the industry average of 14.72X, with solid earnings growth expectations [11][13]. - The Zacks Consensus Estimate for GS's earnings implies year-over-year growth of 8.8% for 2025 and 14.1% for 2026, with sales expected to increase by 3.3% and 5.9%, respectively [15].