April 16, 2025 a 02:46 am
HBAN: Dividend Analysis - Huntington Bancshares Incorporated
The following analysis delves into the dividend profile of Huntington Bancshares Incorporated, which exhibits a strong history of dividends and showcases certain areas of operational strength. Its ability to consistently pay dividends over decades coupled with its strategic payouts enhances its attractiveness. Investors should examine both financial resilience and consistency in the context of dividend continuation.
📊 Overview
Huntington Bancshares Incorporated operates within the financial sector and maintains a notable record of dividend stability. This commitment is evident in its 42 years of uninterrupted dividend history, a noteworthy achievement within its industry. The dividend yield stands at a compelling 4.20%. Despite the stability, investors should be aware of the relatively low recent dividend growth and the firm’s considerable market cap.
| Aspect | Details |
|---|---|
| Sector | Financial |
| Dividend Yield | 4.20% |
| Current Dividend per Share | 0.10 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Huntington Bancshares has shown consistent dividend distribution over the years. The dividend history provides insights into the company's financial health and management's commitment to returning value to shareholders. This stability is a solid indicator for income-focused investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.155 |
| 2024 | 0.620 |
| 2023 | 0.620 |
| 2022 | 0.620 |
| 2021 | 0.605 |
📈 Dividend Growth
The growth of dividends over time is critical in assessing future increases and the potential impact on investor income. Despite a relatively modest growth rate of 0.81% over the last three years and 1.34% over the past five years, the overall trend suggests stability.
| Time | Growth |
|---|---|
| 3 years | 0.81% |
| 5 years | 1.34% |
The average dividend growth is 1.34% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio represents how much of the earnings and free cash flow are allocated to dividends. A low payout ratio indicates that the company retains most earnings for growth or other purposes, which can be advantageous for long-term sustainability.
| Key figure | Ratio |
|---|---|
| EPS-based | 7.37% |
| Free cash flow-based | 7.79% |
With a payout ratio of 7.37% (EPS) and 7.79% (FCF), the metrics point towards a conservative and sustainable dividend policy, which provides ample room for potential market disruptions.
📈 Cashflow & Capital Efficiency
Understanding cash flow and capital efficiency provides insights into operational efficiency and financial stability. Huntington Bancshares demonstrates strong earnings yield and free cash flow yield, suggesting effective cash management and operational efficiency.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 7.69% | 13.68% | 18.76% |
| Earnings Yield | 8.22% | 10.60% | 11.01% |
| CAPEX to Operating Cash Flow | 0% | 5.27% | 5.31% |
| Stock-based Compensation to Revenue | 1.07% | 1.40% | 1.45% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | 94.73% | 94.69% |
The cash flow metrics showcase Huntington Bancshares' strong ability to generate free cash flow efficiently. This capability feeds back into strengthening capital reserves for strategic deployment.
⚠️ Balance Sheet & Leverage Analysis
The balance sheet analysis reveals the leverage position and liquidity, which are fundamental to risk assessment and investment strategy for financial institutions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.01% | 64.05% | 64.63% |
| Debt-to-Assets | 0.10% | 6.55% | 6.27% |
| Debt-to-Capital | 1.00% | 39.04% | 39.26% |
| Net Debt to EBITDA | 1.38 | =0 | =0 |
| Current Ratio | =0 | =0 | =0 |
| Quick Ratio | 145.52% | 5064.5% | 10.09% |
| Financial Leverage | 1034.60% | 978.49% | 1031.56% |
Huntington Bancshares has shown an increase in financial leverage with significant quick ratios in 2023, enhancing liquidity. However, the debt levels should be closely monitored as part of ongoing risk management.
📊 Fundamental Strength & Profitability
Key profitability metrics provide insight into operational performance and cost management capabilities, crucial for determining a firm's competitive edge and financial health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.83% | 10.08% | 12.62% |
| Return on Assets | 0.95% | 1.03% | 1.22% |
| Net Profit Margin | 19.55% | 28.09% | 30.85% |
| EBIT Margin | 70.35% | 34.33% | 38.10% |
| EBITDA Margin | - | - | - |
| Gross Margin | 100% | 100% | 100% |
| Research & Development to Revenue | - | - | - |
The profitability analysis demonstrates that Huntington Bancshares maintains respectable margins and a solid return on equity, reflecting operational effectiveness and strategic financial management.
📉 Price Development
✅ Dividend Scoring System
Analyzing key factors to rate Huntington Bancshares' dividend strategy provides a comprehensive perspective on its investment potential.
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 35/40
🗣️ Rating
Huntington Bancshares exhibits a robust dividend profile characterized by a strong history of payments, a reliable payout structure, and high financial stability. Despite moderate dividend growth, its solid foundational strengths make it a compelling choice for dividend-focused investors seeking stability and moderate income growth potential.