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 the payment on February 17, 2023. Previously, the company paid $0.40 per share.
At the most recent share price of $50.25 / 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 paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
Analyst Price Forecast Suggests 25.30% Upside
As of January 30, 2023, the average one-year price target for Webster Financial is $62.96. The forecasts range from a low of $50.50 to a high of $78.75. The average price target represents an increase of 25.30% from its latest reported closing price of $50.25.
The projected annual revenue for Webster Financial is $2,466MM, an increase of 12.37%. The projected annual EPS is $6.80, an increase of 82.89%.
Fund Sentiment
There are 948 funds or institutions reporting positions in Webster Financial. This is a decrease of 34 owner(s) or 3.46% over the last quarter.
Average portfolio weight of all funds dedicated to US:WBS is 0.3453%, an increase of 15.0930%. Total shares owned by institutions decreased in the last three months by 0.57% to 186,691K shares.
What are large shareholders doing?
Capital International Investors holds 8,720,529 shares representing 5.01% ownership of the company. In it’s prior filing, the firm reported owning 8,535,136 shares, representing an increase of 2.13%. The firm increased its portfolio allocation in WBS by 17.46% over the last quarter.
CAIBX – CAPITAL INCOME BUILDER holds 5,822,182 shares representing 3.35% ownership of the company. In it’s prior filing, the firm reported owning 5,808,514 shares, representing an increase of 0.23%. The firm increased its portfolio allocation in WBS by 24.86% over the last quarter.
Price T Rowe Associates holds 5,753,283 shares representing 3.31% ownership of the company. In it’s prior filing, the firm reported owning 6,743,470 shares, representing a decrease of 17.21%. The firm increased its portfolio allocation in WBS by 18.63% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 5,249,283 shares representing 3.02% ownership of the company. In it’s prior filing, the firm reported owning 5,244,076 shares, representing an increase of 0.10%. The firm increased its portfolio allocation in WBS by 11.89% over the last quarter.
IJH – iShares Core S&P Mid-Cap ETF holds 5,138,260 shares representing 2.95% ownership of the company. In it’s prior filing, the firm reported owning 5,121,289 shares, representing an increase of 0.33%. The firm increased its portfolio allocation in WBS by 8.13% over the last quarter.
Webster Financial Background Information
(This description is provided by the company.)
Webster Financial Corporation is the holding company for Webster Bank, National Association and its HSA Bank division. With $32.6 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 155 banking centers and 297 ATMs. Webster also provides mobile and online banking. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation; the equipment finance firm Webster Capital Finance Corporation; and HSA Bank, a division of Webster Bank, which provides health savings account trustee and administrative services. Webster Bank is a member of the FDIC and an equal housing lender.
This story originally appeared on Fintel.
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