April 19, 2025 a 06:46 am
📊 MTB: Dividend Analysis - M&T Bank Corporation
M&T Bank Corporation exhibits a robust dividend profile with consistent payouts and growth over decades. The company’s commendable yield and prudent payout ratios characterize its dividend strategy. Despite economic challenges, M&T Bank’s dividends reflect stability, attracting long-term income-focused investors.
📈 Overview
M&T Bank Corporation operates within the financial sector, offering a notable dividend yield of 2.86%. The current dividend per share stands at 5.37 USD, with an impressive dividend history spanning 41 years without cuts or suspensions.
| Sector | Dividend Yield (%) | Current Dividend Per Share (USD) | Dividend History (Years) | Last Cut or Suspension |
|---|---|---|---|---|
| Financial | 2.86 | 5.37 | 41 | None |
📉 Dividend History
The dividend history of M&T Bank Corporation highlights its commitment to rewarding shareholders. This long-standing tradition is essential for income-focused investors seeking reliability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.35 |
| 2024 | 5.35 |
| 2023 | 5.20 |
| 2022 | 4.80 |
| 2021 | 4.50 |
📈 Dividend Growth
Analyzing the dividend growth provides insight into the company’s potential for future dividend enhancements. The 3-year growth rate is a modest 5.94%, while the 5-year rate maintains steadiness at 5.47%.
| Time | Growth (%) |
|---|---|
| 3 years | 5.94 |
| 5 years | 5.47 |
The average dividend growth is 5.47% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are crucial for assessing dividend sustainability. M&T Bank boasts an EPS-based payout ratio of 34.58% and a free cash flow-based ratio of 28.54%, indicating a conservative approach to dividend distributions.
| Key Figure | Ratio (%) |
|---|---|
| EPS-based | 34.58 |
| Free Cash Flow-based | 28.54 |
The low payout ratios suggest that M&T Bank's dividends are well-covered by both earnings and cash flow, reinforcing confidence in its dividend viability.
Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency metrics reveals M&T Bank’s financial health and investment potential. Key ratios include a strong free cash flow yield of 11.74% and a favorable earnings yield of 9.69%.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 11.52% | 16.00% | 18.42% |
| Earnings Yield | 8.26% | 12.02% | 8.42% |
| CAPEX to Operating Cash Flow | - | 6.56% | 4.68% |
| Stock-based Compensation to Revenue | - | - | 1.39% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | 93% | 95% |
These metrics underscore M&T Bank's efficient use of capital and robust cash flow, essential for sustaining dividend payouts.
Balance Sheet & Leverage Analysis
A thorough examination of leverage and liquidity metrics is vital in understanding M&T Bank’s financial stability. The company presents a low debt-to-equity ratio of 0.04, reflecting prudent capital management.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.04 | 0.49 | 0.28 |
| Debt-to-Assets | 0.01 | 0.06 | 0.04 |
| Debt-to-Capital | 0.04 | 32.87% | 22.06% |
| Net Debt to EBITDA | 0 | 0 | 0 |
| Current Ratio | 35.96 | 0.33 | 7.52 |
| Quick Ratio | 33.92 | 0.33 | 7.52 |
This highlights a solid balance sheet with minimal leverage, providing a strong base for dividend sustainability.
Fundamental Strength & Profitability
Profitability ratios such as Return on Assets (ROA) and Return on Equity (ROE) are indicative of M&T Bank’s financial robustness and operational efficiency.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.92% | 10.17% | 7.87% |
| Return on Assets | 1.24% | 1.32% | 0.99% |
| Margins: Net | 23.47% | 30.46% | 24.86% |
M&T Bank's durable profitability metrics suggest a competitive advantage, supporting ongoing dividend strategies.
Price Development
Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 5 |
Total Score: 38/40
Rating
🔍 M&T Bank Corporation exhibits exceptional dividend characteristics with high scores across multiple dimensions, particularly in stability, financial stability, and payout ratios. Its consistent dividend record makes it an attractive proposition for dividend-oriented investors seeking reliability and growth, solidifying its place as a strong investment in the financial sector.