FIRST UNITED CORPORATION ANNOUNCES SECOND QUARTER 2024 DIVIDEND

Rhea-AI Summary

First United Corporation (FUNC) declares a cash dividend of $.20 per share, payable on May 1, 2024, to holders of record of the Corporation's common stock as of April 17, 2024.

Insights

Financial Analyst

The declaration of a cash dividend of $.20 per share by First United Corporation represents a tangible return on investment for shareholders and signals confidence by the company's management in its financial stability and profit-generating ability. It's important to analyze the dividend yield, which is calculated by dividing the annual dividends per share by the share price. This metric helps investors understand the return on their investment relative to the market value of the stock.

Furthermore, the timing and consistency of dividend payments can indicate the company's long-term financial health. Regular dividends are often perceived as a sign of a company's mature and stable position in the market. It would be prudent to compare this dividend declaration with the company's historical payout ratio, which is the proportion of earnings paid out as dividends to shareholders. A payout ratio that is too high might not be sustainable in the long run, whereas a lower ratio could suggest room for future dividend growth.

Investors should also consider the ex-dividend date, which is April 17, 2024, in this case. Share purchases must be made before this date to be eligible for the dividend payment. This often influences stock trading patterns as the date approaches.

Market Research Analyst

A dividend announcement can have several market implications. Firstly, it may affect investor sentiment, potentially increasing demand for the stock as it becomes more attractive to income-focused investors. The size and timing of the dividend could also be compared to industry peers to gauge competitiveness. If the dividend is higher than average, it might attract more investors, whereas a lower dividend could suggest that the company is conserving cash for other strategic investments or operations.

Additionally, the market may interpret the dividend in the context of the company's capital allocation strategy. A steady or increased dividend might imply that the company has limited high-return investment opportunities and thus is returning cash to shareholders. On the other hand, a reduction or omission of dividends could signal internal investments or possible financial difficulties. It's beneficial to analyze the company's growth prospects and how they align with the dividend policy.

Economist

From an economic standpoint, dividend declarations must be assessed in the context of the prevailing economic conditions. During periods of low interest rates, dividends become a more attractive source of income, potentially leading to a higher valuation of dividend-paying stocks. Conversely, in a high-interest-rate environment, the opportunity cost of holding dividend stocks increases, as investors might find better returns in fixed-income securities.

Moreover, the broader economic outlook, including factors such as inflation rates, GDP growth and unemployment rates, can influence investor perception of the safety and attractiveness of dividend stocks. A robust economic environment may bolster confidence in the company's ability to maintain or grow its dividends, while an economic downturn could raise concerns about future earnings and the sustainability of dividend payments.

OAKLAND, Md., March 6, 2024 /PRNewswire/ -- First United Corporation (NASDAQ: FUNC) announces that its Board of Directors declared a cash dividend of $.20 per share that will be payable on May 1, 2024, to holders of record of the Corporation's common stock as of April 17, 2024.

About First United Corporation

First United Corporation is the parent company of First United Bank & Trust, a Maryland trust company with commercial banking powers. The Bank's wholly-owned subsidiaries include OakFirst Loan Center, Inc. and OakFirst Loan Center, LLC, both of which are finance companies, and First OREO Trust and FUBT OREO I, LLC, both of which were formed for the purposes of holding, servicing and disposing of the real estate that the Bank acquires through foreclosure or by deed in lieu of foreclosure. The Bank also owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, which was formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland and a 99.9% non-voting membership interest in MCC FUBT Fund, LC, an Ohio limited liability company formed for the purpose of acquiring, developing and operating low-income housing units in Allegany County, Maryland. The Corporation's website is www.mybank.com.

View original content:https://www.prnewswire.com/news-releases/first-united-corporation-announces-second-quarter-2024-dividend-302082096.html

SOURCE First United Corporation

FAQ

When will First United Corporation (FUNC) pay the cash dividend?

First United Corporation (FUNC) will pay the cash dividend of $.20 per share on May 1, 2024.

What is the amount of the cash dividend declared by First United Corporation (FUNC)?

First United Corporation (FUNC) declared a cash dividend of $.20 per share.

Who is eligible to receive the cash dividend from First United Corporation (FUNC)?

Holders of record of the Corporation's common stock as of April 17, 2024, are eligible to receive the cash dividend from First United Corporation (FUNC).