Webster Financial Corp. (NYSE: WBS) - Another Bank Raises Dividend

The latest in a string of banks to increase its quarterly payout to shareholders, Waterbury Connecticut-based Webster Financial Corp. (NYSE: WBS), the holding company for Webster Bank N.A., raised its quarterly cash dividend to $0.05 per share on its common stock, from the previous dividend of $0.01 per share. James C. Smith, Webster's chairman and chief executive officer, said, "Giving consideration to Webster's strong capital position and consistently improving operating performance, the board is pleased to announce an increase in the cash dividend.  The board will consider further increases in the dividend based on future performance and capital needs." The dividend on the common shares will be payable on May 23, 2011, to shareholders of record on May 9, 2011. Webster also declared a regular quarterly cash dividend of $21.25 per share on its 8.50 percent series A non-cumulative perpetual convertible preferred stock, payable on June 15, 2011, to shareholders of record on June 1, 2011. After securing approval from the Federal Reserve, a series of financial institutions rushed to raise their dividends and buy back stock last month. JP Morgan Chase & Co. (NYSE: JPM) raised its quarterly dividend to $0.25 per share from $0.05 per share and announced a $15 billion buyback. Wells Fargo & Co. (NYSE: WFC) raised its dividend to $0.12 per share from $0.05 per share and announced a 200 million share buyback. US Bancorp (NYSE: USB) raised its dividend to $0.125 from $0.05. BB&T Corp. (NYSE: BBT) raised its quarterly dividend payout to $0.16 per share from $0.15 per share. Meanwhile, American Express Co. (NYSE: AXP) and Goldman Sachs Group Inc. (NYSE: GS) announced they were resuming their respective large-scale stock repurchase programs. Goldman Sachs is buying back the $5 billion stake it sold to Warren E. Buffet in the fall of 2008.... Read more