October 23, 2025 a 03:31 pm
RF: Dividend Analysis - Regions Financial Corporation
📊 Regions Financial Corporation has shown remarkable resilience with a dividend history dating back to 1986. Its strong market presence in the banking sector is accentuated by a consistent dividend policy, albeit with a significant suspension in the past. The company exhibits a healthy dividend yield paired with robust growth rates that demonstrate its commitment to returning value to shareholders.
Overview
🗣️ Regions Financial operates within the Financial sector, and it has been a reliable dividend payer with a yield of 4.27%. The current dividend stands at 1.09 USD per share, with a history of 40 consecutive years. The last dividend cut occurred in 2010, signifying over a decade of stability and growth.
| Aspect | Details |
|---|---|
| Sector | Financial |
| Dividend Yield | 4.27% |
| Current Dividend Per Share | 1.085 USD |
| Dividend History | 40 years |
| Last Cut or Suspension | 2010 |
Dividend History
📈 The dividend history reflects the company's dedication to consistent shareholder returns. Understanding such patterns offers insights into long-term financial commitment and indicates the company's ability to sustain payouts through varying economic conditions.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.030 |
| 2024 | 0.980 |
| 2023 | 0.880 |
| 2022 | 0.740 |
| 2021 | 0.650 |
Dividend Growth
📈 A firm's ability to grow dividends points towards its capacity to increase profits, suggesting financial health and profitability. This growth is a significant indicator for income-focused investors who seek growing income streams.
| Time | Growth |
|---|---|
| 3 years | 14.67% |
| 5 years | 10.68% |
The average dividend growth is 10.68% over 5 years. This shows moderate but steady dividend growth, ensuring inflation-adjusted returns from dividend streams.
Payout Ratio
🗣️ Payout ratios reflect the sustainability of a company's dividend policy by illustrating how much net income is used for dividend payments. High ratios may suggest future dividend constraints.
| Key Figure | Ratio |
|---|---|
| EPS-based | 61.97% |
| Free cash flow-based | 36.67% |
The EPS-based payout ratio of 61.97% is relatively high, suggesting a significant portion of earnings is being returned to shareholders, while the 36.67% FCF-based ratio indicates sufficient cash flow coverage for dividend payments.
Cashflow & Capital Efficiency
📊 Understanding cash flow and capital efficiency provides insights into the operational health of a company. It reflects how effectively a company is using its resources to generate cash and profit.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.74% | 11.86% | 13.96% |
| Earnings Yield | 8.79% | 11.43% | 11.14% |
| CAPEX to Operating Cash Flow | 9.14% | 6.80% | 9.28% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.86% | 93.20% | 90.72% |
The cash flow yields and ratios underscore strong operational efficiency, highlighting Regions Financial's aptitude in transforming revenue into cash flows, which supports its dividend disbursements.
Balance Sheet & Leverage Analysis
✅ A sound balance sheet is crucial for financial stability, reflecting how well a company can manage its financial commitments through leverage and liquidity metrics.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 36.32% | 13.37% | 14.32% |
| Debt-to-Assets | 4.13% | 1.53% | 1.47% |
| Debt-to-Capital | 26.64% | 11.79% | 12.53% |
| Net Debt to EBITDA | n/a | n/a | n/a |
| Current Ratio | 0 | 0 | 0 |
| Quick Ratio | 27.11% | 27.80% | 30.11% |
| Financial Leverage | 879.81% | 873.22% | 973.35% |
The low debt-to-equity and robust quick ratios reflect solid financial health, although the high leverage ratio indicates substantial reliance on financing, which needs close attention.
Fundamental Strength & Profitability
😃 Evaluating core profitability metrics like return on equity (ROE) and profit margins supplies insight into the operational efficiency and competitiveness of a firm in its industry.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 10.59% | 11.90% | 14.08% |
| Return on Assets | 1.20% | 1.36% | 1.45% |
| Margins: Net | 20.20% | 22.66% | 30.01% |
| Margins: EBIT | 25.11% | 28.48% | 38.44% |
| Margins: EBITDA | 26.65% | 31.06% | 43.16% |
| Margins: Gross | 70.37% | 76.73% | 92.15% |
| R&D to Revenue | 0% | 0% | 0% |
Impressive profitability margins and ROE figures indicate that Regions Financial efficiently utilizes its assets and equity to generate earnings, demonstrating strong operational strength.
Price Development
Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 30/40
Rating
🔍 Based on the comprehensive analysis, Regions Financial Corporation demonstrates a consistent dividend growth trajectory and retains a solid position in managing its financial responsibilities. The company is recommended as a viable option for dividend-focused investors, with caution advised regarding its leverage levels. Overall, Regions Financial offers a balanced investment opportunity with steady shareholder returns.