May 30, 2025 a 02:46 am
TFC: Dividend Analysis - Truist Financial Corporation
Truist Financial Corporation demonstrates a robust dividend profile with a notable yield and a long-term history of payments. The company's stable dividend growth underscores its steady performance in the financial sector, despite the challenging economic landscape. Truist maintains its commitment to shareholders with an impressive record of dividend continuity and an attractive yield that surpasses many of its peers.
📊 Overview
Truist Financial Corporation, operating within the financial sector, demonstrates a strong commitment to its shareholders with a dividend yield of 5.33%. The current dividend per share stands at 2.36 USD, and the company has upheld its dividend payments for 41 consecutive years. Notably, there have been no recent dividend cuts or suspensions, reflecting their stable financial strategy.
| Metric | Value |
|---|---|
| Sector | Financials |
| Dividend yield | 5.33 % |
| Current dividend per share | 2.36 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
🗣️ Dividend History
The long track record of Truist's dividend payments highlights its dedication to returning value to shareholders. This history is essential for investors seeking reliable income streams.
This image shows the dividend growth trajectory, underscoring the company's commitment to value return.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.04 |
| 2024 | 2.08 |
| 2023 | 2.08 |
| 2022 | 2.00 |
| 2021 | 1.86 |
📈 Dividend Growth
Understanding dividend growth helps investors gauge future expectations and sustainability. Truist Financial has shown moderate growth, which is a positive indicator.
| Time | Growth |
|---|---|
| 3 years | 3.80 % |
| 5 years | 4.00 % |
The average dividend growth is 4.00% over 5 years. This shows moderate but steady dividend growth.
This image depicts the steady increase of Truist's dividends over time.
✅ Payout Ratio
Payout ratios are vital for assessing the sustainability of dividends. Truist keeps a balanced approach with these ratios, indicating solid management of distributions.
| Key figure | Ratio |
|---|---|
| EPS-based | 63.08 % |
| Free cash flow-based | 98.52 % |
An EPS payout ratio of 63.08% shows a healthy margin for dividend sustainability, whereas a high FCF payout ratio of 98.52% indicates more aggressive capital return.
💸 Cashflow & Capital Efficiency
TFC's capital efficiency metrics provide insight into its operational effectiveness and cash flow stability, a critical factor for dividend reliability.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 18.40% | 17.55% | 3.75% |
| Earnings Yield | 10.95% | -2.22% | 8.34% |
| CAPEX to Operating Cash Flow | 5.09% | 0.20% | 0% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 94.91% | 100% | 100% |
The data indicates solid cash flow yields and efficient CAPEX management, enhancing capital return potential.
💪 Balance Sheet & Leverage Analysis
Analysis of leverage ratios offers insights into TFC's financial stability and risk profile, critical factors in dividend assessments.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.04 | 1.01 | 0.98 |
| Debt-to-Assets | 11.33% | 11.15% | 11.72% |
| Debt-to-Capital | 50.98% | 50.25% | 49.44% |
| Net Debt to EBITDA | N/A | N/A | -46.77 |
| Current Ratio | 0.09 | 0.11 | 0.15 |
| Quick Ratio | 0.09 | 0.11 | 0.15 |
| Financial Leverage | 9.18 | 9.06 | 8.34 |
The leverage ratios are stable and illustrate sound financial management, maintaining balance sheet quality.
📊 Fundamental Strength & Profitability
Profitability metrics reflect TFC’s operational success and shareholder value potential, crucial for ongoing dividend payments.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 10.34% | -1.85% | 7.57% |
| Return on Assets | 1.13% | -0.20% | 0.91% |
| Margins: Net | 31.34% | -5.45% | 36.29% |
| Margins: EBIT | 40.97% | -6.07% | -3.62% |
| Margins: EBITDA | N/A | 0% | -3.62% |
| Margins: Gross | 115.33% | 100% | -82.66% |
| Research & Development to Revenue | 0% | 0% | 0% |
Truist shows fluctuating profitability, underlining areas for strategic focus to enhance long-term value creation.
📉 Price Development
The image provides an overview of Truist's stock price trajectory, reflecting market perceptions.
🔍 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🏅 Rating
Truist Financial Corporation provides a strong dividend proposition for income-seeking investors given its stability in payments and promising yield. Despite minor fluctuations in profitability, the company's steadfast financial management supports a favorable dividend outlook. It's a viable option for those prioritizing consistent returns in their portfolios.