U.S. Bancorp Announces New Stock Buyback Plan to Drive Long-Term Growth

U.S. Bancorp has announced a new stock buyback plan to drive long-term growth. The company aims to repurchase up to 100 million shares of its common stock over the next four years.

This move is a strategic decision to return value to shareholders and boost the company's stock price. By buying back its own shares, U.S. Bancorp can increase earnings per share and make its stock more attractive to investors.

The new stock buyback plan is a key component of the company's growth strategy, which also includes investing in technology and expanding its digital banking capabilities. By doing so, U.S. Bancorp aims to improve its competitiveness and drive long-term growth.

U.S. Bancorp has announced a new share repurchase program, authorizing up to $5 billion to be used for buying back the company's common stock starting September 13, 2024.

The actual repurchase activities are expected to commence in early 2025, and the company will implement the share repurchase program at its discretion, keeping a close watch on economic conditions while managing its capital growth and adhering to regulatory standards.

U.S. Bancorp has also announced a quarterly dividend of 50 cents per common share, payable on October 15 to shareholders on record as of September 30.

This represents a 2% increase from the previous quarter, with the annual payout totaling $2.00 per common share.

The repurchases may occur either through open market transactions or through private negotiations, and the company will adjust its capital distributions based on prevailing conditions.

U.S. Bancorp shares are trading higher in the premarket session, up 1.68% to $45.50 at last check Thursday.

U.S. Bancorp's financials have demonstrated continued growth, with a rising trend in revenues over the past few years, backed by growth in fee income and net interest income.

The company's organic growth and diverse revenue sources are key strengths, making it a competitive player in the banking sector.

A $5 billion share repurchase program has been announced, set to begin in early 2025, which could potentially boost earnings per share by reducing the number of outstanding shares.

This move signals strong confidence in the bank's financial health and future prospects, and enhances the stock's attractiveness for income-focused investors.

The dividend increase to $0.50 per share quarterly, or $2.00 annually, provides a yield of around 4% based on current stock prices.

The share repurchase program does not obligate the company to purchase a particular amount of outstanding common stock, and there is no guarantee as to how many shares will be repurchased by the company.

Forward-looking statements about U.S. Bancorp's capital action plans are subject to inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements.

U.S. Bancorp is taking steps to boost shareholder returns with a new share repurchase program and dividend hike.

The company has launched a $5 billion share repurchase program starting in early 2025, which will allow it to buy back its common stock.

U.S. Bancorp's quarterly dividend has been raised to $0.50 per share, a 2% increase from the previous quarter.

This dividend will be paid on October 15 to shareholders on record as of September 30, with an annual payout of $2.00 per common share.

The share repurchase program will be implemented at the company's discretion, taking into account economic conditions, capital growth, and regulatory standards.

U.S. Bancorp plans to adjust its capital distributions based on prevailing conditions, and the repurchases may occur through open market transactions or private negotiations.

Here are the key details of the new share repurchase program and dividend hike:

USB shares are trading higher in the premarket session, reflecting the positive impact of these developments on investor sentiment.