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Zions Lifts Quarterly Dividend by 5%: Can it Keep Up the Pace?

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Key Takeaways

  • {\"0\":\"Zions raises its quarterly dividend to 45 cents, up 5% from the previous payout in November 2024.\",\"1\":\"The hike marks ZION\'s fourth dividend increase in five years, with a 6% annualized growth rate.\",\"2\":\"Zions maintains solid capital levels and liquidity, supporting its dividend and share repurchase efforts.\"}

Zions Bancorporation (ZION - Free Report) has announced a quarterly dividend of 45 cents per share, marking an increase of 5% from the prior payout. The dividend will be paid out on Aug. 21 to shareholders as of Aug. 14.

Before this, ZION raised its dividend 5% to 43 cents per share in November 2024. The latest announcement represents the fourth hike in the past five years, with an annualized growth rate of almost 6%. 

Zions’ Historical Dividend Trend
 

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Additionally, Zions has been opportunistically repurchasing shares. In February, the company approved a plan authorizing the buyback of up to $40 million worth of shares for 2025, which was completed in the first quarter. The company intends to repurchase shares cautiously until further regulatory clarity on capital norms.

As of June 30, 2025, Zions’ common equity tier 1 capital ratio was 11%, up from 10.6% in the prior-year period. Further, at the end of the June-ended quarter, the company had $7.04 billion in borrowed funds, while cash and due from banks and total deposits were $780 million and $73.8 billion, respectively. 

Zions’ solid balance sheet and robust liquidity continue to underpin its financial stability and enhance shareholder value. The company holds long-term issuer ratings of BBB+ from both Standard & Poor's and Fitch Ratings, and Baa2 from Moody’s Investors Service. With a strong capital base and resilient earnings, it is well-positioned to navigate ongoing challenges while sustaining its improved dividend payouts.

Where Do Zions’ Peers Stand in Terms of Dividend Payouts?

Unlike Zions, some of its peers, such as Comerica (CMA - Free Report) and KeyCorp (KEY - Free Report) , have not announced any hikes in quarterly dividends in recent days.

Comerica is currently paying out a quarterly dividend of 71 cents per share. The company has raised dividends only once in the past five years, with an annualized growth rate of 1.31%. 

Moreover, KeyCorp is paying out a quarterly dividend of 20.5 cents per share. Like CMA, the company hasn’t been regular in raising dividend payouts. KeyCorp has increased dividends just twice in the past five years, with an annualized growth rate of 2.71%. 

Comerica and KeyCorp last announced an increase in dividends in 2022.

Zions’ Price Performance & Zacks Rank

Over the past three months, shares of Zions have gained 12%, outperforming the industry’s growth of 4.3%. 

Three-Month Price Performance
 

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ZION currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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