PNC Financial (NYSE:PNC) is the latest bank to announce its third-quarter dividend, declaring a $1.15 per share quarterly payout on its common stock Thursday.
PNC has one of the better dividends in the financial sector, paying out $4.60 per share annually.
IMAGE SOURCE: GETTY IMAGES.
The stock price is up nearly 6% in the past week. It is currently trading at about $109 per share, down 31% year to date, and PNC has a dividend yield of about 4.2%. The company has increased its dividend for nine straight years, with an increase of 53% over the past three years.
The third-quarter dividend payout is 27% based on the average net income of the bank's previous four quarters.
PNC saw a huge boost in net income in the second quarter, climbing to $3.65 billion from $1.37 billion a year ago in the second quarter. The gain was entirely due to the sale of its stake in BlackRock (NYSE:BLK), which netted $4.3 billion. Otherwise, the bank would have had a net loss due to high provision from credit losses -- which ballooned to $2.5 billion, up from $914 million in the first quarter -- due to financial hardships related to the pandemic.
The company holds a strong capital position with a common equity tier 1 ratio of 11.3% as of June 30, up from 9.4 percent in the first quarter. Also, PNC's liquidity coverage ratio significantly exceeds the regulatory minimum.
Meanwhile, the Pittsburgh-based bank continues to expand nationally, recently announcing new solution centers in Boston and Nashville.
Also on Thursday, PNC appointed David Cohen to its board of directors, effective immediately. Cohen is a vice president at Comcast (NASDAQ:CMCSA).
Where to invest $1,000 right now
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and The PNC Financial Services Group, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
