June 10, 2025 a 03:31 am
HBAN: Dividend Analysis - Huntington Bancshares Incorporated
Huntington Bancshares Incorporated stands as a compelling choice for dividend-centric investors. With a current dividend yield of 3.82% and a solid track record of 42 consecutive years of dividend payments, the company exemplifies reliability in shareholder returns. Despite a modest 3- and 5-year dividend growth of approximately 0.82% and 1.34%, respectively, the historical consistency solidifies its long-term potential for income-seeking investors. The payout ratios, based on EPS and free cash flow, appear manageable, offering room for sustainable future payouts.
📊 Overview
Huntington Bancshares operates in the financial sector and boasts a noteworthy dividend profile:
| Metric | Detail |
|---|---|
| Sector | Financial |
| Dividend yield | 3.82% |
| Current dividend per share | $0.72 USD |
| Dividend history | 42 years |
| Last cut or suspension | None |
🗣️ Dividend History
A stable dividend history is crucial for analyzing a company's commitment to returning profits to shareholders. Huntington Bancshares' uninterrupted dividend payments over 42 years highlight its enduring financial resilience.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.310 |
| 2024 | 0.620 |
| 2023 | 0.620 |
| 2022 | 0.620 |
| 2021 | 0.605 |
📈 Dividend Growth
Though dividend growth has been modest, it indicates steady commitment to enhancements without jeopardizing financial health. Over the past five years, this growth has been gradual but consistent.
| Time | Growth |
|---|---|
| 3 years | 0.82% |
| 5 years | 1.34% |
The average dividend growth is 1.34% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
A comprehensive analysis of payout ratios, estimated from EPS and free cash flows, reflects Huntington's capability to sustain its dividend policy without overextending financial commitments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 51.18% |
| Free cash flow-based | 62.46% |
With a payout ratio of 51.18% based on EPS and 62.46% based on free cash flow, Huntington Bancshares exhibits a prudent dividend payout strategy, maintaining flexibility for growth investments.
⚙️ Cashflow & Capital Efficiency
Analyzing cash flow metrics is essential to ensure sustained dividends and operational viability. Ratios like FCF yield and CAPEX-to-operating cash flow quantify internal efficiencies and cash utilization.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 7.08% | 13.68% | 18.76% |
| Earnings Yield | 8.22% | 10.60% | 11.01% |
| CAPEX to Operating Cash Flow | 8.94% | 5.27% | 5.31% |
| Stock-based Compensation to Revenue | 1.44% | 1.40% | 1.45% |
| Free Cash Flow / Operating Cash Flow Ratio | 92.12% | 94.73% | 94.69% |
The strong free cash flow and efficient capital management metrics showcase Huntington's ability to sustain investment and growth strategies while upholding shareholder returns.
📉 Balance Sheet & Leverage Analysis
Understanding leverage and liquidity indicators is pivotal for assessing financial stability. Huntington's measured debt levels and liquidity ratios showcase well-balanced capital strategies for enduring economic fluctuations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 83.96% | 67.25% | 66.06% |
| Debt-to-Assets | 8.11% | 6.87% | 6.40% |
| Debt-to-Capital | 45.64% | 40.21% | 39.78% |
| Net Debt to EBITDA | - | - | - |
| Current Ratio | 0.16 | 0.14 | 0.09 |
| Quick Ratio | 0.15 | 0.14 | 0.09 |
| Financial Leverage | 10.35 | 9.79 | 10.32 |
Huntington Bancshares maintains an impressive balance between leveraging opportunities effectively while safeguarding against potential liquidity challenges.
🔍 Fundamental Strength & Profitability
Reviewing fundamental metrics provides insight into operational efficiency and profitability, critical for informed investment decisions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.83% | 10.08% | 12.62% |
| Return on Assets | 0.95% | 1.03% | 1.22% |
| Net Margin | 26.27% | 28.09% | 30.85% |
| EBIT Margin | -8.42% | 34.33% | 38.10% |
| R&D to Revenue | 0% | 0% | 0% |
The combination of robust profitability margins and efficient resource allocation reflect Huntington's competitive advantage and sustainable business model.
🧭 Price Development
🏆 Dividend Scoring System
| Criterion | Score | Performance |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 33/40
🔍 Rating
In conclusion, Huntington Bancshares Incorporated showcases a strong and reliable dividend profile, enhanced by robust financial health and moderate growth prospects. Given its favorable scoring in dividend stability and yield metrics, Huntington presents itself as a viable option for dividend-focused investors seeking long-term, sustainable income in the financial sector.