Do Popular’s (BPOP) Routine Dividends Reflect Stability or Distract from Asset Quality Questions?

• Earlier this month, Popular, Inc. declared monthly cash dividends on its Non-Cumulative Monthly Income Preferred Stock and Trust Preferred Securities, payable at the end of October and early November to shareholders of record as of October 15, 2025.
• This routine dividend announcement came as broader concerns about loan quality at regional banks surfaced, weighing on investor sentiment toward financial institutions like Popular.
• We'll now assess how heightened sector-wide worries about loan risk and asset quality might influence Popular's investment narrative.

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Popular Investment Narrative Recap

To be a shareholder in Popular, Inc., you need to believe in the resilience of its Puerto Rico-focused franchise, strong capital management, and its ability to maintain credit quality during periods of sector uncertainty. This month’s routine preferred and trust dividend declarations are unlikely to materially impact the company’s short-term catalysts, with the upcoming Q3 earnings release and sector loan quality concerns remaining the key watchpoints. The principal risk to remain mindful of is deteriorating asset quality, particularly given ongoing scrutiny of regional banks’ loan portfolios.

The most relevant recent announcement is the declaration of October’s preferred and trust dividend payments. It affirms Popular’s ongoing commitment to stable returns for income-focused shareholders, offering some reassurance as investors remain alert to the potential ripple effects of higher credit losses in the regional banking sector. However, true sentiment shifts may hinge more on forthcoming quarterly results and any indications of asset quality trends.

Yet, despite continued dividend stability, investors should not overlook the questions now swirling around Popular’s exposure to local economic volatility…

Read the full narrative on Popular (it's free!)

Popular's outlook anticipates $3.8 billion in revenue and $930.2 million in earnings by 2028. This is based on a projected 10.5% annual revenue growth rate and a $210.5 million increase in earnings from the current $719.7 million.

Uncover how Popular's forecasts yield a $141.75 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members estimate Popular’s fair value anywhere from US$127.15 to US$256.58 per share. With concerns about loan and asset quality in focus, you can explore how other investors see both the opportunities and risks for Popular’s long-term performance.

Explore 3 other fair value estimates on Popular - why the stock might be worth just $127.15!

Build Your Own Popular Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Popular research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Popular research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Popular's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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