July 05, 2025 a 03:31 pm
USB: Dividend Analysis - U.S. Bancorp
U.S. Bancorp's strong dividend history and consistent yield make it an appealing choice for income-focused investors. With a stable payout ratio and a modest growth trend, the company's dividends appear sustainable. However, careful attention to the balance sheet and its impact on future dividend potential is advised.
📊 Overview
U.S. Bancorp operates within a stable sector, providing investors with a consistent income stream through its notable dividend yield. Its current dividend per share and long-standing history of 42 years without any cuts underscores the firm's commitment to returning value to shareholders.
| Metric | Details |
|---|---|
| Sector | Financial Services |
| Dividend Yield | 4.42 % |
| Current Dividend per Share | 2.21 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The history of U.S. Bancorp's dividends reflects its reliable performance and ability to maintain consistent payouts over time, key factors for evaluating long-term income potential. Understanding this history aids in evaluating sustainability and growth potential.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.00 |
| 2024 | 1.98 |
| 2023 | 1.93 |
| 2022 | 1.88 |
| 2021 | 1.76 |
📈 Dividend Growth
The growth rate of U.S. Bancorp's dividends over the years highlights its strategy toward enhancing shareholder value. Monitoring dividend growth assists investors in predicting future income expansion.
| Time | Growth |
|---|---|
| 3 years | 4.00 % |
| 5 years | 4.62 % |
The average dividend growth is 4.62 % over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
The payout ratio indicates how much of U.S. Bancorp's earnings are distributed as dividends. A balanced payout ratio suggests sustainable dividends, pivotal for long-term investors.
| Key Figure | Ratio |
|---|---|
| EPS-based | 51.51 % |
| Free cash flow-based | 41.35 % |
The EPS payout ratio of 51.51 % is reasonable, and the lower FCF payout ratio of 41.35 % indicates good cash coverage for dividends.
✅ Cashflow & Capital Efficiency
The analysis of cash flow and capital efficiency provides insight into U.S. Bancorp's operational effectiveness and ability to fund dividends from generated cash. Evaluating these metrics is crucial for understanding financial robustness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 15.11 % | 12.65 % | 32.52 % |
| Earnings Yield | 8.44 % | 8.13 % | 8.97 % |
| CAPEX to Operating Cash Flow | 0% | 0% | 0% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 100 % | 100 % | 100 % |
The consistent free cash flow and efficient capital use highlight U.S. Bancorp's strong capability to meet dividend obligations while investing in growth initiatives.
📉 Balance Sheet & Leverage Analysis
Analyzing balance sheet figures and leverage ratios reveals U.S. Bancorp's financial stability and risk profile. Low leverage ratios generally imply less debt-related risk.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.26 | 1.21 | 1.40 |
| Debt-to-Assets | 0.108 | 0.101 | 0.105 |
| Debt-to-Capital | 0.557 | 0.547 | 0.583 |
| Net Debt to EBITDA | 1.92 | 0.71 | 2.23 |
| Current Ratio | 0.28 | 0.26 | 0.24 |
| Quick Ratio | 0.28 | 0.26 | 0.24 |
| Financial Leverage | 11.58 | 12.00 | 13.29 |
U.S. Bancorp's leverage ratios show a manageable level of debt, which suggests a stable financial base to support ongoing operations and dividends.
💪 Fundamental Strength & Profitability
Reviewing fundamental strengths and profitability metrics provides a comprehensive picture of U.S. Bancorp's efficiency in generating earnings and maintaining a competitive edge.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 10.75 % | 9.82 % | 11.47 % |
| Return on Assets | 0.93 % | 0.82 % | 0.86 % |
| Margins: Net | 14.75 % | 13.36 % | 21.26 % |
| Margins: EBIT | 18.52 % | 16.90 % | 26.65 % |
| Margins: EBITDA | 20.72 % | 19.41 % | 28.69 % |
| Margins: Gross | 58.76 % | 63.36 % | 81.04 % |
| R&D to Revenue | 0% | 0% | 0% |
The profitability metrics indicate robust operational performance, ensuring U.S. Bancorp's ability to reinvest in the business and maintain competitive dividends.
📊 Price Development
🔍 Dividend Scoring System
| Category | Score | Scale |
|---|---|---|
| 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
U.S. Bancorp demonstrates strong dividend reliability, with robust growth potential and solid financial fundamentals. It is recommended as a reliable component of a diversified, income-generating portfolio. However, investors should continue to monitor financial metrics for any significant changes that might impact future dividend sustainability.