Prosperity Bancshares, Inc. (NYSE:PB) Announces Dividend Increase – $0.58 Per Share

Prosperity Bancshares, Inc. (NYSE:PB) announced a quarterly dividend on Wednesday, October 16th, Wall Street Journal reports. Investors of record on Friday, December 13th will be given a dividend of 0.58 per share by the bank on Thursday, January 2nd. This represents a $2.32 dividend on an annualized basis and a yield of 3.10%. The ex-dividend date of this dividend is Friday, December 13th. This is a boost from Prosperity Bancshares’s previous quarterly dividend of $0.56.

Prosperity Bancshares has raised its dividend payment by an average of 5.7% annually over the last three years and has raised its dividend every year for the last 26 years. Prosperity Bancshares has a dividend payout ratio of 38.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Prosperity Bancshares to earn $5.74 per share next year, which means the company should continue to be able to cover its $2.24 annual dividend with an expected future payout ratio of 39.0%.

Prosperity Bancshares Stock Up 0.8 %

NYSE PB opened at $74.73 on Friday. The stock has a market cap of $7.17 billion, a PE ratio of 17.22, a P/E/G ratio of 1.49 and a beta of 0.89. Prosperity Bancshares has a fifty-two week low of $49.60 and a fifty-two week high of $74.96. The business has a 50 day moving average price of $71.90 and a two-hundred day moving average price of $66.26.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings results on Wednesday, July 24th. The bank reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.20 by $0.02. The firm had revenue of $458.95 million during the quarter, compared to analysts’ expectations of $290.06 million. Prosperity Bancshares had a return on equity of 6.32% and a net margin of 25.10%. During the same quarter in the prior year, the business earned $1.21 EPS. Sell-side analysts anticipate that Prosperity Bancshares will post 5.03 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Royal Bank of Canada upped their price target on Prosperity Bancshares from $70.00 to $74.00 and gave the stock a “sector perform” rating in a report on Thursday, July 25th. Piper Sandler increased their target price on Prosperity Bancshares from $73.00 to $80.00 and gave the company an “overweight” rating in a research note on Thursday, July 25th. Raymond James cut Prosperity Bancshares from a “strong-buy” rating to an “outperform” rating and set a $80.00 target price for the company. in a research note on Tuesday, September 17th. Wedbush upgraded Prosperity Bancshares from a “neutral” rating to an “outperform” rating and increased their target price for the company from $75.00 to $90.00 in a research note on Tuesday, September 24th. Finally, Morgan Stanley upgraded Prosperity Bancshares from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $75.00 to $86.00 in a research note on Monday, August 5th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, Prosperity Bancshares currently has a consensus rating of “Moderate Buy” and a consensus target price of $77.27.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.