July 2024 Dividend Stocks Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2024
0mins
Should l Buy HBANM?
Source: Yahoo Finance
Market Overview: Global markets are showing mixed performances with a shift towards value and small-cap stocks, while dividend stocks are gaining attention for their potential to provide steady returns amid economic volatility and geopolitical tensions.
Highlighted Dividend Stocks: Notable dividend stocks include Allianz, Premier Financial, and Huntington Bancshares, each demonstrating varying yields and payout stability, with some facing sustainability challenges in their dividends.
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Analyst Views on HBANM
Wall Street analysts forecast HBANM stock price to rise
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 22.950
Low
Averages
High
Current: 22.950
Low
Averages
High
No data
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Optimism in the Financial Sector Despite Underperformance
- Regional Banks Undervalued: Dory Wiley, CEO of Commerce Street Holdings, asserts that despite the overall poor performance of the financial sector, regional banks maintain strong fundamentals with high capital ratios and good deposits, indicating their potential value.
- Sustained Profitability Growth: Wiley notes that banks are currently valued at a forward P/E of only 10 times earnings, and with good growth rates, these stocks could realistically reach a valuation range of 15 to 18 times, reflecting market confidence in their future performance.
- Superior Credit Quality: He emphasizes that the credit underwriting quality in the banking sector is at its historical best, and while some individual banks may face weaknesses, the overall health of the industry provides reassurance to investors.
- Abundant Market Opportunities: Despite concerns over AI disruption, Wiley remains optimistic about investment opportunities in bank stocks, believing there is significant growth potential across small, mid, and large-cap banks that investors should consider.
See More
Huntington Bank (HBAN) Q4 Earnings Miss Expectations, Stock Declines
- Earnings Report: Huntington Bank's Q4 earnings per share fell short of market expectations, with an 11% revenue growth overshadowed by higher-than-expected expenses, leading to a stock decline that reflects market concerns about future performance.
- Expense Growth: The company anticipates a 10% to 11% increase in expenses for 2026, exceeding investor expectations, partly due to one-time integration costs associated with the Vertex deal, which may impact investor confidence.
- Market Outlook: Despite the expense pressures, Huntington Bank remains optimistic about 2026, projecting revenue growth between 11% and 14%, indicating its competitive position and growth potential in the market.
- Operating Leverage: The bank achieved nearly a 3% increase in operating margins in 2025 and expects to expand margins by 1.5% to 2% in 2026, demonstrating a strong balance between profitability and reinvestment.
See More
Small Banks Thrive with PE Ratios Below 11 Amid Market Optimism
- Banking Resilience: Small and regional banks have demonstrated strong performance after enduring a 500 basis point rate shock, maintaining historical high capital ratios, indicating robust risk resilience and potential for increased profitability in the future.
- PE Ratio Advantage: While money center banks trade at forward PE ratios between 13 and 16, small and regional banks are priced below 11, growing faster, suggesting that investors can achieve higher returns by opting for smaller banks.
- Yield Attractiveness: For instance, Huntington offers a yield three times that of JP Morgan, highlighting the appeal of small banks in terms of yield distribution, which has garnered increased investor interest.
- Rapidly Growing Community Banks: Third Coast Bankshares and South Plains Financial in Texas are among the fastest-growing community banks, priced at or below 11 times forward PE ratios, showcasing their competitive edge and investment potential in the market.
See More
RBC Capital Reaffirms Outperform Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANM)
Analyst Recommendation: RBC Capital maintains an "Outperform" rating for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANM) with a projected price target of $26.38/share, indicating a potential upside of 19.32% from its current price of $22.11/share.
Revenue and Earnings Projections: The projected annual revenue for Huntington Bancshares is estimated at $8,243 million, reflecting a 9.88% increase, with a non-GAAP EPS forecast of 1.76.
Institutional Holdings: There are currently 7 funds reporting positions in HBANM, with total institutional shares remaining stable at 993K, while some funds have decreased their holdings over the last quarter.
ETF Holdings Changes: Notable changes in ETF holdings include PFF reducing its shares by 8.89%, PGX decreasing by 4.85%, and GPRF increasing its shares by 22.76%, indicating varied sentiment among institutional investors.
See More
Huntington Bancshares Declares $356.25 Quarterly Cash Dividend on Preferred Stock
- Dividend Declaration: Huntington's Board of Directors has declared a quarterly cash dividend of $356.25 per share, payable on March 2, 2026, which demonstrates the company's ongoing commitment to shareholder returns and enhances investor confidence.
- Preferred Stock Yield: This dividend corresponds to the 5.70% Series I Non-Cumulative Perpetual Preferred Stock, reflecting the company's stable profitability and cash flow, thereby reinforcing its competitive position in the regional banking sector.
- Shareholder Return Strategy: The dividend payment date is set for March 2, 2026, with a record date of February 15, 2026, ensuring shareholders receive timely returns, which enhances the company's ability to attract long-term investors.
- Company Background: Huntington is a regional bank holding company with assets of $223 billion and over 1,000 branches, continuously providing a comprehensive suite of banking and wealth management services, showcasing its strong market influence.
See More
Huntington Bancshares Declares $356.25 Quarterly Cash Dividend on Series I Preferred Stock
- Dividend Announcement: Huntington's Board of Directors declared a quarterly cash dividend of $356.25 per share on its Series I Non-Cumulative Perpetual Preferred Stock, payable on March 2, 2026, which demonstrates the company's ongoing commitment to stable shareholder returns and enhances investor confidence.
- Shareholder Benefit: This dividend payment will benefit shareholders of record as of February 15, 2026, reflecting the company's focus on shareholder value while also indicating its robust financial health and profitability.
- Company Background: Huntington Bancshares is a regional bank holding company with $223 billion in assets, founded in 1866, providing a comprehensive suite of banking and wealth management services, showcasing its strong competitive position in the market.
- Business Coverage: With over 1,000 branches across 14 states, Huntington's extensive operations cater to diverse consumer and small to mid-sized business needs, thereby driving long-term growth potential.
See More
Optimism in the Financial Sector Despite Underperformance
- Regional Banks Undervalued: Dory Wiley, CEO of Commerce Street Holdings, asserts that despite the overall poor performance of the financial sector, regional banks maintain strong fundamentals with high capital ratios and good deposits, indicating their potential value.
- Sustained Profitability Growth: Wiley notes that banks are currently valued at a forward P/E of only 10 times earnings, and with good growth rates, these stocks could realistically reach a valuation range of 15 to 18 times, reflecting market confidence in their future performance.
- Superior Credit Quality: He emphasizes that the credit underwriting quality in the banking sector is at its historical best, and while some individual banks may face weaknesses, the overall health of the industry provides reassurance to investors.
- Abundant Market Opportunities: Despite concerns over AI disruption, Wiley remains optimistic about investment opportunities in bank stocks, believing there is significant growth potential across small, mid, and large-cap banks that investors should consider.
See More
Huntington Bank (HBAN) Q4 Earnings Miss Expectations, Stock Declines
- Earnings Report: Huntington Bank's Q4 earnings per share fell short of market expectations, with an 11% revenue growth overshadowed by higher-than-expected expenses, leading to a stock decline that reflects market concerns about future performance.
- Expense Growth: The company anticipates a 10% to 11% increase in expenses for 2026, exceeding investor expectations, partly due to one-time integration costs associated with the Vertex deal, which may impact investor confidence.
- Market Outlook: Despite the expense pressures, Huntington Bank remains optimistic about 2026, projecting revenue growth between 11% and 14%, indicating its competitive position and growth potential in the market.
- Operating Leverage: The bank achieved nearly a 3% increase in operating margins in 2025 and expects to expand margins by 1.5% to 2% in 2026, demonstrating a strong balance between profitability and reinvestment.
See More
Small Banks Thrive with PE Ratios Below 11 Amid Market Optimism
- Banking Resilience: Small and regional banks have demonstrated strong performance after enduring a 500 basis point rate shock, maintaining historical high capital ratios, indicating robust risk resilience and potential for increased profitability in the future.
- PE Ratio Advantage: While money center banks trade at forward PE ratios between 13 and 16, small and regional banks are priced below 11, growing faster, suggesting that investors can achieve higher returns by opting for smaller banks.
- Yield Attractiveness: For instance, Huntington offers a yield three times that of JP Morgan, highlighting the appeal of small banks in terms of yield distribution, which has garnered increased investor interest.
- Rapidly Growing Community Banks: Third Coast Bankshares and South Plains Financial in Texas are among the fastest-growing community banks, priced at or below 11 times forward PE ratios, showcasing their competitive edge and investment potential in the market.
See More
RBC Capital Reaffirms Outperform Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANM)
Analyst Recommendation: RBC Capital maintains an "Outperform" rating for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANM) with a projected price target of $26.38/share, indicating a potential upside of 19.32% from its current price of $22.11/share.
Revenue and Earnings Projections: The projected annual revenue for Huntington Bancshares is estimated at $8,243 million, reflecting a 9.88% increase, with a non-GAAP EPS forecast of 1.76.
Institutional Holdings: There are currently 7 funds reporting positions in HBANM, with total institutional shares remaining stable at 993K, while some funds have decreased their holdings over the last quarter.
ETF Holdings Changes: Notable changes in ETF holdings include PFF reducing its shares by 8.89%, PGX decreasing by 4.85%, and GPRF increasing its shares by 22.76%, indicating varied sentiment among institutional investors.
See More
Huntington Bancshares Declares $356.25 Quarterly Cash Dividend on Preferred Stock
- Dividend Declaration: Huntington's Board of Directors has declared a quarterly cash dividend of $356.25 per share, payable on March 2, 2026, which demonstrates the company's ongoing commitment to shareholder returns and enhances investor confidence.
- Preferred Stock Yield: This dividend corresponds to the 5.70% Series I Non-Cumulative Perpetual Preferred Stock, reflecting the company's stable profitability and cash flow, thereby reinforcing its competitive position in the regional banking sector.
- Shareholder Return Strategy: The dividend payment date is set for March 2, 2026, with a record date of February 15, 2026, ensuring shareholders receive timely returns, which enhances the company's ability to attract long-term investors.
- Company Background: Huntington is a regional bank holding company with assets of $223 billion and over 1,000 branches, continuously providing a comprehensive suite of banking and wealth management services, showcasing its strong market influence.
See More
Huntington Bancshares Declares $356.25 Quarterly Cash Dividend on Series I Preferred Stock
- Dividend Announcement: Huntington's Board of Directors declared a quarterly cash dividend of $356.25 per share on its Series I Non-Cumulative Perpetual Preferred Stock, payable on March 2, 2026, which demonstrates the company's ongoing commitment to stable shareholder returns and enhances investor confidence.
- Shareholder Benefit: This dividend payment will benefit shareholders of record as of February 15, 2026, reflecting the company's focus on shareholder value while also indicating its robust financial health and profitability.
- Company Background: Huntington Bancshares is a regional bank holding company with $223 billion in assets, founded in 1866, providing a comprehensive suite of banking and wealth management services, showcasing its strong competitive position in the market.
- Business Coverage: With over 1,000 branches across 14 states, Huntington's extensive operations cater to diverse consumer and small to mid-sized business needs, thereby driving long-term growth potential.
See More
