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Commercial banks

First Union Corporation Increases Quarterly Dividend for Third Time in 12 Months

Strategic Insights

— 1 min read

First Union Corporation's board of directors has once again increased the quarterly dividend on its common stock, marking the third time in 12 months the dividend has been raised. The new quarterly dividend of $0.42 per share, effective with the third quarter of 1998, represents a 31% increase from the previous rate. This decision reflects the company's commitment to its new financial performance guidelines, which include a goal to increase the dividend payout ratio to a range of 40-45%. As of March 31, 1998, the dividend payout ratio was 39.8%.

Key Takeaways:

  • The quarterly dividend on First Union Corporation's common stock was increased to $0.42 per share, effective with the third quarter of 1998.
  • This represents a 31% increase from the previous rate of $0.32, approved in June 1997.
  • The increase is the third time in 12 months the dividend has been raised, reflecting the company's commitment to its new financial performance guidelines.
  • The dividend payout ratio as of March 31, 1998, was 39.8%, with a goal to increase it to a range of 40-45%.
  • First Union Corporation has paid a dividend every year since 1914 and has increased the dividend at least annually for the past 20 consecutive years.
  • The company's 20-year record of increased dividends includes a $0.37 rate approved in December 1997 and a $0.32 rate approved in June 1997.
  • Edward E. Crutchfield, chairman and chief executive officer, noted that the increase underscores First Union's confidence in the value added by the CoreStates merger and other initiatives.

Statistics:

  • The quarterly dividend was increased to $0.42 per share, effective with the third quarter of 1998.
  • This represents a 31% increase from the previous rate of $0.32.
  • The dividend payout ratio as of March 31, 1998, was 39.8%.
  • First Union Corporation has $220 billion in assets and $16 billion in stockholders' equity at March 31, 1998.
  • The company has paid a dividend every year since 1914 and has increased the dividend at least annually for the past 20 consecutive years.

Sources:

First Union Corporation

PR Newswire - [June 16, 1998](http://www.prnewswire.com)

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