Fifth Third Bancorp raised its quarterly dividend by 2 cents, or 5%, to $0.42 per share, marking its 11th consecutive year of dividend increases. The increase follows an 8% raise last year, and at the new annualized rate of $1.68 per share the payout yields roughly 3% based on the share price the bank reported at the end of the second quarter. Fifth Third reported a 47.6% dividend payout ratio in the second quarter, with tangible common equity at 8.3% of assets and net charge-offs at 0.30% of average loans. The bank's payout ratio was unusually high in the first quarter because of the impact of certain items before returning to a more normal level in the second quarter. The main risk is the pace of future growth, since 5% is slower than last year's 8% and bank dividends depend on capital needs, credit conditions and cash generation.
Fifth Third BancorpFifth Third raised its quarterly dividend 5% to $0.42 per share, its 11th straight annual increase.
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