U.S. Bancorp Enhances Shareholder Returns With New Buyback And Dividend Hike: Details

U.S. Bancorp (NYSE:USB) shares are trading higher in the premarket session on Thursday.

The Board of Directors at U.S. Bancorp has approved a new share repurchase program, authorizing up to $5 billion to be used for buying back the company’s common stock starting September 13, 2024. The actual repurchase activities are expected to commence in early 2025.

Additionally, U.S. Bancorp has announced a quarterly dividend of 50 cents per common share. This dividend will be paid on October 15 to shareholders on record as of September 30.

This represents a 2% increase from the previous quarter. With this dividend rate, the annual payout totals $2.00 per common share.

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U.S. Bancorp plans to implement the share repurchase program at its discretion, keeping a close watch on economic conditions while managing its capital growth and adhering to regulatory standards.

The repurchases may occur either through open market transactions or through private negotiations. The company will adjust its capital distributions based on prevailing conditions.

Any further capital distributions, including dividends, will require approval from the Board of Directors.

According to Benzinga Pro, USB stock has gained over 20% in the past year. Investors can gain exposure to the stock via iShares U.S. Regional Banks ETF (NYSE:IAT) and First Trust Nasdaq Bank ETF (NASDAQ:FTXO).

Price Action: USB shares are trading higher by 1.68% to $45.50 premarket at last check Thursday.

Photo by JHVEPhoto via Shutterstock

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