What Popular (BPOP)'s Dividend Declarations and ESOP Share Offering Mean for Shareholders

• In late September 2025, Popular, Inc. declared a regular monthly cash dividend on its Non-Cumulative Monthly Income Preferred Stock and a monthly distribution on its Trust Preferred Securities, while also filing a US$63.50 million shelf registration for the offering of 500,000 common shares related to its Employee Stock Ownership Plan (ESOP).
• This combination of capital actions and ongoing income distributions highlights Popular’s commitment to shareholder returns alongside efforts to strengthen workforce engagement and financial flexibility.
• We'll explore how Popular's dividend declarations and ESOP-related share offering contribute to its investment narrative and long-term growth outlook.

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Popular Investment Narrative Recap

To be a shareholder in Popular, Inc., you need to believe in its potential for consistent earnings and dividend growth, driven by digital transformation and expansion in Puerto Rico’s financial market. The recent announcement of ongoing preferred dividends and distributions underscores stability, but does not materially shift the biggest short-term catalyst, digital banking progress, or reduce exposure to the key risk of local economic volatility. The greatest immediate challenge remains Popular’s reliance on Puerto Rico’s economy, which can amplify swings in loan demand and asset quality.

Among Popular’s recent actions, the US$63.50 million common stock shelf registration for its ESOP stands out as most relevant, reflecting efforts to broaden employee ownership and further align workforce incentives. While this announcement supports internal engagement and capital flexibility, it does not directly influence the bank’s ability to quicken digital adoption, which remains pivotal for enhancing investor confidence and value over the near term.

By contrast, investors should be aware that the company’s ongoing growth is still closely tied to...

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

Popular's narrative projects $3.8 billion revenue and $930.2 million earnings by 2028. This requires 10.5% yearly revenue growth and a $210.5 million earnings increase from $719.7 million today.

Uncover how Popular's forecasts yield a $141.75 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Popular’s fair value from US$127.15 up to US$250.44 across three viewpoints. While opinions span a wide range, many recognize that slower digital banking adoption may challenge Popular’s ability to capture future growth, inviting you to consider additional perspectives for a more complete view.

Explore 3 other fair value estimates on Popular - why the stock might be worth as much as 99% more than the current price!

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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