U.S. Bancorp (USB-PP)

The board of U.S. Bancorp (NYSE:USB) has announced that it will be increasing its dividend by 4.3% on the 17th of October to $0.48, up from last year's comparable payment of $0.46. This will take the dividend yield to an attractive 4.0%, providing a nice boost to shareholder returns.

U.S. Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 42%, which means that U.S. Bancorp would be able to pay its last dividend without pressure on the balance sheet.

Looking forward, EPS is forecast to rise by 35.1% over the next 3 years. The future payout ratio could be 36% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

They have 591 billion in assets and yet the market cap is 64 billion....

About U.S. Bank

U.S. Bancorp, with approximately 70,000 employees and $591 billion in assets as of June 30, 2022, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. The company has been recognized for its approach to digital innovation, social responsibility, and customer service, including being named one of the 2022 World’s Most Ethical Companies and Fortune’s most admired superregional bank.

U.S. Bancorp (NYSE: USB) is bracing for a big hit to its mortgage-revenue in the third quarter, the latest sign that banks are seeing the impact of a slowdown in home sales.

"The one area that I would say that we're seeing a little bit of pressure is just in the mortgage banking business," said U.S. Bancorp Chief Financial Officer Terry Dolan during a Barclays investor conference on Monday. The Minneapolis-based bank is expecting a 30% to 35% decline in mortgage revenue from the second quarter, a bigger decline than expected. "That's very much in line with what's, happening in the industry. FWIW

Their is a rapid rise in mortgage interest rates. The rate for a 30-year, fixed-interest mortgage has doubled in nine months, topping 6% last week for the first time since George W. Bush's presidency.

That's painful not just for people trying to borrow money to buy a home, but also for homeowners with adjustable-rate mortgages, whose monthly payments ratchet up every year that interest rates rise.

Would it be bad for me to hope that UBS holds the notes on a high number of adjustable rate mortgages? Profits to UBS bottom line with no weight of underwriting costs.. sweet...