December 05, 2025 a 07:46 am
FITB: Dividend Analysis - Fifth Third Bancorp
Fifth Third Bancorp, with a market capitalization of over $30 billion, stands as a significant player in the financial sector. Boasting a dividend yield of 3.39% and a commitment to maintaining its dividend payouts for 42 consecutive years, it showcases investment resilience. While exhibiting moderate dividend growth over the past 5 years, the company sustains a robust equity payout ratio, supporting its stable dividend distribution strategy.
📊 Overview
Fifth Third Bancorp, as part of the financial services sector, provides a competitive dividend yield of 3.39%. With a current dividend per share at $1.72 and a track record of 42 years without significant cuts, investors can expect reliability. The absence of recent cuts or suspensions underscores management's focus on steady returns to shareholders.
| Factor | Details |
|---|---|
| Sector | Financial |
| Dividend yield | 3.39 % |
| Current dividend per share | 1.72 USD |
| Dividend history | 42 years |
| Last cut or suspension | None |
📈 Dividend History
Fifth Third Bancorp's dividend history signifies consistent payout policies, crucial for income-focused investors. This stability in dividends over decades reflects strong company performance and its strategic financial management.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.14 |
| 2024 | 1.44 |
| 2023 | 1.36 |
| 2022 | 1.26 |
| 2021 | 1.14 |
📈 Dividend Growth
Fifth Third Bancorp exhibits a dividend growth rate of 8.90% over the last 5 years, indicative of its financial soundness and growth potential. This consistent increment appeals to investors looking to hedge inflation with growing income streams.
| Time | Growth |
|---|---|
| 3 years | 8.10% |
| 5 years | 8.90% |
The average dividend growth is 8.90% over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
The payout ratio metrics indicate the proportion of earnings paid out as dividends, with EPS-based at 47.63% and FCF-based at 30.64%. These figures suggest a balanced distribution strategy, ensuring both reinvestment potential and attractive shareholder returns. A payout ratio under 50% is generally considered safe and sustainable.
| Key figure | Ratio |
|---|---|
| EPS-based | 47.63 % |
| Free cash flow-based | 30.64 % |
💰 Cashflow & Capital Efficiency
Efficient cash flow management is evident with a substantial free cash flow yield of 12.38% and a free cash to operating cash ratio of 85.34%. These figures reflect the firm’s ability to sustain operations and maintain capital budgets without sacrificing potential dividend growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 8.36% | 16.92% | 25.42% |
| Earnings Yield | 8.02% | 9.95% | 10.83% |
| CAPEX to Operating Cash Flow | 14.66% | 11.44% | 10.66% |
| Stock-based Compensation to Revenue | 1.26% | 1.37% | 1.82% |
| Free Cash Flow / Operating Cash Flow Ratio | 85.34% | 88.56% | 89.34% |
📝 Balance Sheet & Leverage Analysis
Strong liquidity ratios and well-managed leverage indicated by a debt-to-equity ratio of 0.97. The ratios suggest capacity for sustaining debt with adequate coverage to navigate financial obligations comfortably.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.97 | 1.01 | 1.07 |
| Debt-to-Assets | 0.089 | 0.091 | 0.090 |
| Debt-to-Capital | 0.49 | 0.50 | 0.52 |
| Net Debt to EBITDA | 4.68 | 4.71 | 4.29 |
| Current Ratio | 0.38 | 0.47 | 0.41 |
| Quick Ratio | 0.38 | 0.47 | 0.41 |
| Financial Leverage | 10.84 | 11.19 | 11.97 |
🔍 Fundamental Strength & Profitability
High return on equity and steady margins across profit indicators reflect Fifth Third Bancorp's efficient operations and successful investment in growth-driving ventures.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 11.78% | 12.25% | 14.12% |
| Return on Assets | 1.08% | 1.09% | 1.18% |
| Net Margin | 17.73% | 19.01% | 26.94% |
| EBIT Margin | 22.35% | 24.18% | 34.06% |
| EBITDA Margin | 26.14% | 27.92% | 38.87% |
| Gross Margin | 59.18% | 63.99% | 83.03% |
| Research & Development to Revenue | 0% | 0% | 0% |
🗺️ Price Development
⚖️ Dividend Scoring System
| Criterion | Score | Bar |
|---|---|---|
| Dividend yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend growth | 3/5 | |
| Payout ratio | 4/5 | |
| Financial stability | 4/5 | |
| Dividend continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 3/5 |
Total Score: 32/40
✅ Rating
Fifth Third Bancorp exemplifies a balanced dividend and financial strategy, making it a solid option for investors seeking stability coupled with progressive income growth. Given the historic consistency and robust payout ratios, it receives a recommendation as a reliable dividend-paying entity with potential for stable long-term returns.