Where does Huntington Bancshares (HBAN) rank after its 14% announced dividend increase?

hban

Summary; Huntington Bancshares Incorporated (HBAN) announced a regular quarterly dividend of $0.08, a 14 percent increase from the prior rate of $0.07 per share. The firm has generated double digit growth in dividends in each of the last six years. Dividends have been paid by Huntington for the past 36 consecutive years. The dividend will be paid at the new higher rate on January 2, 2016, to shareholders of record at close of business on December 20, 2016. Huntington Bancshares Inc. is currently priced at $10.06.

Listed in the table below are the quarterly dividend payments since 2010. Our analysis of Huntington Bancshares Inc. as a Top 100 Dividend Stock candidate is listed below;

Date Quarterly Dividend
12/20/2016 0.08
9/15/2016 0.07
6/15/2016 0.07
3/16/2016 0.07
12/17/2015 0.07
9/15/2015 0.06
6/15/2015 0.06
3/16/2015 0.06
12/17/2014 0.06
9/15/2014 0.05
6/13/2014 0.05
3/14/2014 0.05
12/17/2013 0.05
9/13/2013 0.05
6/13/2013 0.05
3/14/2013 0.04
12/14/2012 0.04
9/13/2012 0.04
6/14/2012 0.04
3/15/2012 0.04
12/16/2011 0.04
9/15/2011 0.04
6/15/2011 0.01
3/16/2011 0.01
12/16/2010 0.01
9/15/2010 0.01
6/15/2010 0.01
3/16/2010 0.01

Analysis of Huntington Bancshares Inc. is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 2.78%  173
Dividend Growth (3-6 year avg) 30.4%  333
Forward P/E 11.21  43
S&P Financial Rating B  240
Beta 1.15  150
Total Score    939

Additional Information;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate BV 2016 P/BV Ratio 10 yr P/BV Low 10 yr P/BV High 5 yr max Yield % 5 yr lowest Yield %
2.78% 15.2% 45.7% 8.45 1.19 0.29 2.03 3.23% 1.28%

Final Analysis;

  • Huntington’s dividend yield is above the average of the S&P 500 Index and is trading above its average historical dividend yield.
  • Huntington maintains a 3 year dividend growth rate of 15.2%.
  • Huntington has paid out a dividend consecutively for the past 36  years.
  • Huntington is trading at a low forward P/E ratio and at a low price/book value (P/BV) ratio.  From a relative valuation perspective based upon P/BV, Huntington is undervalued.
  • Huntington maintains a credit rating of B. This is below investment grade, a negative.
  • Huntington maintains a beta of 1.15, higher than the average company.

Based upon its poor financial rating and high beta, Huntington Bancshares Inc. does not qualify as one of our Top 100 Dividend Stocks.

Huntington Bancshares Inc. Dividend Yield Chart (Click to enlarge) hban3

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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