Northern Trust Hikes Dividend - Analyst Blog
April 17 2013 - 8:55AM
Zacks
Hours after reporting its first
quarter 2013 financial results, Northern Trust
Corporation (NTRS) in an attempt to impress its
shareholders, announced an increase in its quarterly dividend rate
along with the approval for a new share buyback program.
The new dividend rate has been fixed at 31 cents, an increase of
3.33% over the previous rate of 30 cents and will be paid on July
1, 2013 to shareholders of record as on June 7, 2013. In Mar 2012,
the company made a similar announcement of a 7.1% rise in dividend
rate surging from 28 cents to 30 cents.
Also, Northern Trust Corporation received approval for a 12 million
share buyback program that replaces its existing authorization.
Consistent dividend payments with occasional increases and share
buybacks have been Northern Trust Corporation’s favoured mode of
rewarding its shareholders over time. If we steal a look into the
results of the quarter ended Mar 31, 2013, the company paid $73
million in dividends and repurchased 1.4 million shares worth $74
million at an average price of $53.08 per share.
Apart from the capital deployment actions of Northern Trust, a
brief discussion on the financial results of the company’s first
quarter 2013 is also given below:
The company’s earnings per share in the quarter came in at 71
cents, roughly 6% above the year-ago earnings but a cent behind the
Zacks Consensus Estimate.
Results on a year-over-year basis
benefited from top-line growth, partially offset by a rise in
operating expenses. Further, improving credit quality and strong
capital ratios were the tailwinds.
The Zacks Consensus Estimate for Northern Trust currently stands at
72 cents for the second quarter 2013, reflecting an increase of
7.2% year over year. Earnings Estimate for 2013 and 2014 are at
$3.23 and $3.61, up 12.96% and 11.9%, respectively.
Northern Trust currently retains a Zacks Rank #3 (Hold). Among the
major regional banks, Fifth Third Bancorp (FITB)
and BB&T Corporation (BBT) are scheduled to
report on Apr 18, while State Street Corporation
(STT) will report on Apr 19.
BB&T CORP (BBT): Free Stock Analysis Report
FIFTH THIRD BK (FITB): Free Stock Analysis Report
NORTHERN TRUST (NTRS): Free Stock Analysis Report
STATE ST CORP (STT): Free Stock Analysis Report
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