U.S. Bancorp announced a planned 4% increase in its quarterly common stock dividend, raising it from $0.50 to $0.52 per share, effective in the third quarter of 2025, subject to board approval. This move signals the company's confidence in its financial performance and capital position.
The announcement follows the Federal Reserve’s Dodd-Frank Act Stress Test (DFAST) results, which indicated U.S. Bancorp's preliminary Stress Capital Buffer (SCB) is 2.6% for the period beginning October 1, 2025. This requires the company to maintain a Common Equity Tier 1 (CET1) ratio at or above 7.1%.
As of March 31, 2025, U.S. Bancorp's CET1 capital to risk-weighted assets ratio was 10.8%, significantly exceeding regulatory requirements. The company also plans to continue share repurchases under its existing $5 billion program, further demonstrating its commitment to shareholder returns.
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