Dividend Hike and Expansion Plans Might Change the Case for Investing in Atlantic Union Bankshares (AUB)

• Atlantic Union Bankshares Corporation recently announced an 8.8% increase in its quarterly dividend to US$0.37 per share, alongside the declaration of a preferred stock dividend, with payments scheduled in late November and early December 2025 to shareholders of record as of mid-November.
• This move not only underscores management's confidence in the company’s financial outlook, but also coincides with plans for branch expansion and ongoing investment in technology and new markets.
• We'll consider how the company’s higher common dividend payout influences its investment narrative and growth potential in the Southeast.

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Atlantic Union Bankshares Investment Narrative Recap

Atlantic Union Bankshares appeals to investors who believe in the economic resilience and growth of the U.S. Southeast, especially as the company expands its branch footprint and technology offerings. The recent 8.8% dividend hike is a positive signal, but it does not materially alter the most pressing short-term catalyst: the successful integration of recent acquisitions and expansion projects. The chief risk remains execution on these fronts, particularly given rising charge-offs and elevated operating expenses tied to new branches.

The announcement of net charge-offs rising to US$38.6 million for Q3, due to two commercial loan write-downs, stands out amid the updates. This context is highly relevant as it highlights credit cost volatility, a factor that could become more significant with geographic and balance sheet growth and is important when considering the sustainability of dividend increases and profit forecasts. Yet, even as management expresses confidence through higher payouts, investors should be mindful of...

Read the full narrative on Atlantic Union Bankshares (it's free!)

Atlantic Union Bankshares is projected to reach $1.9 billion in revenue and $806.7 million in earnings by 2028, according to analysts. This outlook assumes a 28.7% annual revenue growth and an increase in earnings of $614.8 million from the current $191.9 million.

Uncover how Atlantic Union Bankshares' forecasts yield a $41.56 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Three estimates from the Simply Wall St Community value Atlantic Union Bankshares between US$30.79 and US$44.71 per share. With integration challenges still a leading concern, your peers see room for widely differing views on future performance.

Explore 3 other fair value estimates on Atlantic Union Bankshares - why the stock might be worth 7% less than the current price!

Build Your Own Atlantic Union Bankshares 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 Atlantic Union Bankshares research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Atlantic Union Bankshares research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Atlantic Union Bankshares' 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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