Webster Financial said on January 25, 2023 that its board of directors declared a regular quarterly dividend of $0.40 per share ($1.60 annualized). Shareholders of record as of February 3, 2023 will receive their payout on February 17, 2023. Previously, the company paid $0.40 per share.
At its most recent share price of $50.25 per share, the stock’s dividend yield was 3.18%.
Additionally, the company’s dividend payout ratio is 0.43. The payout ratio tells us how much of a company’s income is distributed in dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid as a dividend. A payout ratio greater than one means the company is drawing on savings to maintain its dividend, an unhealthy situation. Companies with little growth prospects are expected to pay the majority of their income in dividends, which typically means a payout ratio of between 0.5 and 1.0. Companies with good growth prospects are expected to keep some earnings to invest in those growth prospects, which translates into a payout ratio of zero to 0.5.
The company has not raised its dividend in the past three years.
Analysts’ price forecast suggests an upside of 25.30%.
As of January 30, 2023, the one-year average price target for Webster Financial is $62.96. Forecasts range from a low of $50.50 to a high of $78.75. The average price target represents a 25.30% increase from the last reported closing price of $50.25.
Projected annual revenue for Webster Financial is $2,466 million, an increase of 12.37%. Expected annual EPS is $6.80, an increase of 82.89%.
Bottom feeling
There are 948 funds or institutions reporting positions at Webster Financial. This is a decrease of 34 owners or 3.46% from last quarter.
Average portfolio weight of all funds dedicated to the United States: WBS is 0.3453%, an increase of 15.0930%. Total shares held by institutions decreased in the past three months by 0.57% to 186,691,000 shares.
What are the big shareholders doing?
Capital International Investors holds 8,720,529 shares representing 5.01% ownership of the company. In its previous filing, the company reported that it owns 8,535,136 shares, which it represents an increase by 2.13%. The company increased its portfolio allocation to WBS of 17.46% in the recent quarter.
CAIBX – CAPITAL INCOME BUILDER holds n. 5,822,182 shares equal to 3.35% of the company. In its previous filing, the company reported that it owns 5,808,514 shares, which it represents an increase by 0.23%. The company increased its portfolio allocation to WBS of 24.86% in the recent quarter.
Price T Rowe Associates holds 5,753,283 shares representing 3.31% ownership of the company. In its previous filing, the company reported that it owns 6,743,470 shares, which it represents a decrease by 17.21%. The company increased its portfolio allocation to WBS of 18.63% in the recent quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 5,249,283 shares representing 3.02% ownership of the company. In its previous filing, the company reported that it owns 5,244,076 shares, which it represents an increase by 0.10%. The company increased its portfolio allocation to WBS of 11.89% in the recent quarter.
IJH – iShares Core S&P Mid-Cap ETF holds 5,138,260 shares representing 2.95% ownership of the company. In its previous filing, the company reported that it owns 5,121,289 shares, which it represents an increase by 0.33%. The company increased its portfolio allocation to WBS of 8.13% in the recent quarter.
Webster Financial background information
(This description is provided by the company.)
Webster Financial Corporation is the holding company of Webster Bank, National Association and its HSA Bank division. With $32.6 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, fiduciary and investment services through 155 banking centers and 297 ATMs. Webster also provides online and mobile banking services. Webster Bank owns the business-based lending company Webster Business Credit Corporation; equipment finance company Webster Capital Finance Corporation; and HSA Bank, a division of Webster Bank, which provides trust and administration services for healthcare savings accounts. Webster Bank is a member of the FDIC and au pair housing lender.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.