SunTrust to Boost Dividend 50%, Buyback $200M Shares (STI)

SunTrust to Boost Dividend 50%, Buyback $200M Shares (STI)


It was announced late Thursday that SunTrust Banks, Inc. (STI) got the approval from the Federal Reserve to follow through on its plan to raise its dividend payout and buyback shares.

Following the Fed’s stress test review of STI’s capital plan, the bank is now allowed to increase its dividend payout as described in the plan.

The capital plan outlined a 50% dividend increase from a quarterly dividend payout of 5 cents per share to 10 cents per share. This dividend increase, if approved by its Board of Directors at a upcoming meeting in April, will be paid in the second quarter of 2013.

Also, the Fed is allowing SunTrust to go through with its $200 million share repurchase program. This program will be completed between the second quarter of 2013 and the first quarter of 2014.

SunTrust Banks shares were down 20 cents, or -0.68%, during pre-market trading on Friday. Over the past twelve months, the stock is up +32.06%.

The Bottom Line
Shares of SunTrust Banks (STI) have a dividend yield of 1.35% based on last night’s closing price of $29.62 and the company’s updated annualized dividend payout of 40 cents per share.

SunTrust Banks, Inc. (STI) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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