Cullen/Frost Bankers (NYSE:CFR) is approaching its ex-dividend date, slated for November 29, which is crucial for investors aiming to receive the upcoming dividend payment. The bank has announced a dividend of $0.92 per share, scheduled to be distributed on December 15. This payment contributes to an annual total of $3.68 per share, offering a yield of 3.7% based on the current stock price of $98.65.
The dividend's sustainability appears robust with a payout ratio of 34% from last year's earnings, reflecting the company's prudent financial management and commitment to returning value to shareholders. Moreover, Cullen/Frost Bankers has demonstrated consistent earnings growth, with an average annual increase of 14% over the past five years.
In terms of dividend history, shareholders have experienced steady growth in their payouts. The bank has managed to increase its dividend by an average of 6.7% annually over the last decade, showcasing its ability to maintain and grow investor returns over time.
However, potential investors should also consider the risks associated with this investment. While the dividend presents an attractive yield, there is one warning sign that has been identified for Cullen/Frost Bankers that investors should be aware of before making any decisions.
As the ex-dividend date nears, shareholders who are interested in receiving this dividend must own the stock by November 29 to qualify for the December 15 payment. This upcoming dividend payment and the associated yield highlight Cullen/Frost Bankers' commitment to delivering shareholder value through consistent financial performance and careful growth strategies.
InvestingPro Insights
As Cullen/Frost Bankers (NYSE:CFR) gears up for its ex-dividend date, the InvestingPro platform provides valuable insights that could influence investor decisions. With a market capitalization of $6.32 billion and a P/E ratio of 9.43, the company stands as a potentially undervalued investment when considering its near-term earnings growth. The adjusted P/E ratio over the last twelve months as of Q3 2023 is closely aligned at 9.39, reinforcing the consistency in valuation metrics.
InvestingPro Tips highlight that Cullen/Frost Bankers yields a high return on invested capital and has raised its dividend for 31 consecutive years. These factors, along with a dividend yield of 3.73%, underscore the bank's commitment to rewarding its shareholders. Moreover, the dividend growth over the last twelve months as of Q3 2023 has been 5.75%, which aligns with the bank's history of steady dividend increases.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips that delve deeper into the company's financial health and future prospects. Currently, there are 10 more tips available that could provide further clarity on the investment's potential, including analysts' upward revisions for the upcoming period and the stock's strong return over the last month.
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