Following last month's bank stress tests from the Federal Reserve, Regions Financial (NYSE:RF) is fulfilling its stated aim to increase its dividend. The lender will pay its stockholders a quarterly distribution of $0.03 per share, to be dispensed on July 1 to shareholders of record as of June 14. Previously, the company had handed out $0.01 per share in every quarter dating back to Sept 2009.

Regions Financial also announced that it will distribute a $15.9375 dividend on its 6.375% series A preferred stock. This will be paid on June 15 to holders of record as of June 1.

The new common stock dividend annualizes to $0.12 per share. That yields 1.5% at Regions Financial's most recent closing price of $8.22.