Webster Financial Corporation Declares Common and Preferred Dividends

Rhea-AI Summary

Webster Financial Corporation (NYSE:WBS) announced a quarterly cash dividend of $0.40 per share on its common stock, payable on February 16, 2024. The company also declared dividends on its Series F and Series G Preferred Stock, with payouts on March 15, 2024, and April 15, 2024, respectively.

Financial Analyst

The declaration of a quarterly cash dividend of $0.40 per share by Webster Financial Corporation represents a direct cash return to shareholders and is a strong indicator of the company's current financial health and its management's confidence in its cash flow stability. Dividends are often a sign of a mature company with a stable earnings outlook. The consistent payment can signal to investors that the company is generating enough profit to share with its shareholders and might be considered a less volatile investment.

It is important to consider the dividend yield, which is the dividend per share divided by the price per share. The yield provides a measure of the income return relative to the stock price, which is crucial for income-focused investors. However, a high yield can sometimes be a red flag if the company's earnings do not support the dividend payments in the long term, potentially leading to a dividend cut and a negative market reaction.

Market Research Analyst

The announcement of dividends on preferred stock, both Series F and G, is also noteworthy. Preferred stock dividends are typically higher than common stock dividends and take precedence over common stock dividends in the event of liquidation. The specific terms of the dividend payments for the Series F and G Preferred Stock, including the conversion ratio of depositary shares to preferred shares, demonstrate Webster's commitment to meeting its obligations to preferred shareholders.

Preferred stocks often appeal to risk-averse investors seeking stable income with priority over common shareholders for dividend payments. The market's reaction to such declarations can vary depending on the overall interest rate environment, as preferred stocks often behave similarly to bonds. In a rising interest rate environment, the fixed dividend payments might be less attractive compared to new issues with higher rates, potentially affecting the stock's price.

Economist

Dividend declarations can also be interpreted within the broader economic context. In an environment where interest rates are increasing, dividends might be used by companies like Webster Financial Corporation to retain investor interest as fixed income securities become more competitive. Furthermore, the timing and consistency of dividend payments can reflect the company's strategic financial planning and its ability to forecast and manage cash flows effectively in various economic conditions.

From a macroeconomic perspective, if many companies within the financial sector are increasing or maintaining their dividends, it could indicate sectoral strength and stability. Conversely, widespread dividend cuts could signal economic downturns or sector-specific challenges. Thus, Webster's dividend declaration might also be viewed as a microcosm of the financial sector's health.

STAMFORD, Conn.--(BUSINESS WIRE)-- Webster Financial Corporation (NYSE:WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, announced that its Board of Directors declared a quarterly cash dividend of $0.40 per share on its common stock.

The dividend on common shares will be payable February 16, 2024, to shareholders of record as of February 5, 2024.

On its Series F Preferred Stock, Webster declared a quarterly cash dividend of $328.125 per share ($0.328125 per each depositary share, 1,000 of which represent one share of Series F Preferred Stock), payable March 15, 2024, to shareholders of record on March 1, 2024.

On its Series G Preferred Stock, Webster declared a quarterly cash dividend of $16.25 per share ($0.40625 per each depositary share, 40 of which represents one share of Series G Preferred Stock), payable April 15, 2024, to shareholders of record on March 31, 2024.

About Webster

Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. and its HSA Bank division. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division, one of the country’s largest providers of employee benefits solutions. Headquartered in Stamford, CT, Webster is a values-driven organization over $70 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124221725/en/

Media Contact:

Alice Ferreira, 203-578-2610

acferreira@websterbank.com

Investor Contact:

Emlen Harmon, 212-309-7646

eharmon@websterbank.com

Source: Webster Financial Corporation

What is the quarterly cash dividend declared by Webster Financial Corporation (WBS)?

Webster Financial Corporation declared a quarterly cash dividend of $0.40 per share on its common stock.

When will the quarterly cash dividend on common shares be payable for Webster Financial Corporation (WBS)?

The dividend on common shares will be payable on February 16, 2024.

What are the details of the dividends declared on the Series F and Series G Preferred Stock of Webster Financial Corporation (WBS)?

Webster declared a quarterly cash dividend of $328.125 per share ($0.328125 per each depositary share, 1,000 of which represent one share of Series F Preferred Stock), payable on March 15, 2024, and a quarterly cash dividend of $16.25 per share ($0.40625 per each depositary share, 40 of which represents one share of Series G Preferred Stock), payable on April 15, 2024.