U.S. Bancorp boosts dividend 4% after Fed stress test

U.S. Bancorp (NYSE: USB) announced a 4% increase in its quarterly dividend to $0.52 per share, a move that signals confidence in the company's financial stability following successful results from the Federal Reserve's stress test. The dividend boost is part of a broader capital return plan that includes an ongoing $5 billion share repurchase program.

The increased dividend, which brings the annualized payout to $2.08 per share, will be payable on October 15, 2025, to shareholders of record as of September 30, 2025. The announcement was met with a positive market reaction, with U.S. Bancorp's stock closing up 1.48% at $49.37 on the day of the news.

The decision to raise the dividend comes after the Federal Reserve's annual stress test, which assesses the ability of large banks to withstand a severe economic downturn. U.S. Bancorp's strong performance in the test provided the regulatory green light for the capital return plan. The bank's ability to increase its dividend and continue its share buyback program is a testament to its strong capital position and earnings power.

, with an average price target that suggests potential upside from the current stock price. The dividend increase could lead to upward revisions of these price targets as analysts factor in the improved shareholder returns. The bank's commitment to returning capital to shareholders is a key part of its investment thesis, and this latest move reinforces that commitment.

is a sign of the bank's confidence in its future earnings and its ability to navigate a complex economic environment. The ongoing will further enhance shareholder value by reducing the number of outstanding shares and increasing earnings per share. Investors will be closely watching U.S. Bancorp's upcoming earnings reports for further indications of the bank's financial health and its ability to continue to deliver strong returns to shareholders.