October 18, 2025 a 03:31 am
HBAN: Dividend Analysis - Huntington Bancshares Incorporated
Huntington Bancshares Incorporated demonstrates a robust dividend profile with consistent history, yielding a solid 3.53%. This long-standing institution exhibits stability and reliability, having maintained its dividend history for 42 years without major interruptions. The current economic conditions and market trends highlight its steady yet moderate dividend growth, reflecting strategic fiscal management.
📊 Overview
Huntington Bancshares is positioned in a competitive financial sector, offering a steady dividend yield of 3.5348%. With a history of maintaining dividends for over 42 years, it showcases considerable resilience, and the absence of any recent dividend cuts signifies strength.
| Category | Details |
|---|---|
| Sector | Finance |
| Dividend Yield | 3.53% |
| Current Dividend Per Share | 0.72 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
📈 Dividend History
The extensive dividend history of Huntington Bancshares is a testament to its financial reliability. A consistent dividend payout over several decades is crucial for income-focused investors, ensuring regular returns. This sustained distribution reflects the company's ability to manage economic pressures efficiently.
| Year | Dividend Per Share |
|---|---|
| 2025 | 0.465 USD |
| 2024 | 0.620 USD |
| 2023 | 0.620 USD |
| 2022 | 0.620 USD |
| 2021 | 0.605 USD |
📉 Dividend Growth
Analyzing dividend growth is vital for understanding a company's potential for increasing shareholder value. Though the growth is modest at 1.34% over five years, it suggests consistent improvement and confidence in sustaining operations.
| 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
Payout ratio speaks volumes about the company's financial health. It reflects how much of the earnings are distributed as dividends, impacting reinvestment capabilities for future growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 47.26% |
| Free cash flow-based | 54.31% |
The EPS payout ratio of 47.26% and FCF-based ratio of 54.31% are within acceptable ranges, indicating a balanced approach towards shareholder returns and business reinvestment.
✅ Cashflow & Capital Efficiency
The assessment of cash flow and capital efficiency is essential in understanding operational health. Metrics like free cash flow yield and earnings yield gauge the company's profit generation capabilities relative to its market cap.
| Year | 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 | 8.38% | 5.27% | 5.31% |
| Stock-based Compensation to Revenue | 0.88% | 0.90% | 1.32% |
| Free Cash Flow / Operating Cash Flow Ratio | 92.12% | 94.73% | 94.69% |
The data suggests Huntington Bancshares effectively converts earnings into cash flow, supporting both operations and dividend payments.
⚠️ Balance Sheet & Leverage Analysis
A robust balance sheet ensures long-term viability; thus, leverage ratios are critical. Low debt levels relative to equity and assets denote stable capital structure and reduced default risks.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.84 | 0.67 | 0.66 |
| Debt-to-Assets | 0.08 | 0.07 | 0.06 |
| Debt-to-Capital | 0.46 | 0.40 | 0.40 |
| Net Debt to EBITDA | 1.07 | 0.85 | 1.48 |
| Current Ratio | 0.15 | 0.14 | 0.09 |
| Quick Ratio | 0.15 | 0.13 | 0.09 |
| Financial Leverage | 10.35 | 9.78 | 10.32 |
Current debt ratios suggest sound management and ensure the company can meet financial obligations without hampering operational capabilities.
📈 Fundamental Strength & Profitability
Examining return metrics and margins provides insight into a firm's operational effectiveness and profitability, significant for long-term growth perspectives.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.83% | 10.08% | 12.62% |
| Return on Assets | 0.95% | 1.03% | 1.22% |
| Margins: Net | 16.22% | 18.10% | 28.15% |
| EBIT | 20.09% | 22.12% | 34.77% |
| EBITDA | 25.29% | 29.52% | 40.86% |
| Gross | 58.23% | 64.02% | 87.61% |
| R&D to Revenue | 0% | 0% | 0% |
The company's profitability ratios indicate robust business operations, yielding sufficient returns to investors and reinvestment into business expansion.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| 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 |
Total Score: 33 / 40
🗣️ Rating
Huntington Bancshares exhibits strong dividend features, appealing to long-term, income-focused investors. Its stable payout, modest growth, and balanced financial health suggest a reliable, albeit moderately growing dividend stock. We recommend Huntington Bancshares as a "Buy" for those seeking stable dividends with growth potential.