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.
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.