How Popular’s (BPOP) Dividend Hike Sheds Light on Its Capital Return Priorities

• Popular, Inc. announced on August 22, 2025, that its Board of Directors approved a quarterly cash dividend of US$0.75 per share, payable on October 1, 2025 to shareholders of record as of September 12, 2025.
• This dividend increase highlights management's confidence in Popular's financial position and underlines its focus on delivering shareholder value through ongoing capital returns.
• Given this heightened commitment to shareholder returns, we'll now examine how the dividend decision influences Popular's investment narrative and future outlook.

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Popular Investment Narrative Recap

To be a shareholder in Popular, Inc., an investor should have confidence in the long-term prospects of Puerto Rico’s banking sector and the company’s ability to generate steady capital returns despite its geographic concentration. The recent dividend increase sends a positive signal about management’s optimism, but it does not materially alter the short-term catalyst of digital banking adoption, nor does it significantly reduce the ongoing risk from dependence on local economic and regulatory stability.

Among the recent announcements, Popular’s completion of a sizeable share repurchase program in July 2025 stands out, as it reinforces the company’s focus on capital returns and complements the heightened dividends. While share buybacks typically support earnings per share, their effectiveness in offsetting deposit competition or local economic volatility remains to be seen if broader sector risks intensify.

However, in contrast to the positivity of rising dividends, investors should be aware that persistent competition for deposits, especially from alternative investment options like stablecoins, may...

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

Popular's outlook anticipates $3.8 billion in revenue and $919.8 million in earnings by 2028. This scenario is based on a 10.4% annual revenue growth rate and a $200 million increase in earnings from the current $719.7 million.

Uncover how Popular's forecasts yield a $135.38 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community for Popular, Inc. range widely between US$127.15 and US$248.98 per share. While many see compelling value, risks like deposit competition could have broader implications you should consider as you compare these perspectives.

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 4 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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