NEW YORK – Citigroup Inc (NYSE:C). has announced the declaration of dividends for both its common and various series of preferred stock. The quarterly dividend on Citigroup's common stock is set at $0.56 per share, scheduled to be paid on August 23, 2024, to shareholders of record as of August 5, 2024.
In addition to the common stock dividend, the Board of Directors declared dividends on multiple series of preferred stock. Payments for these dividends are due on different dates throughout August and September 2024. The preferred stock dividends range from 3.875% to 7.625%, with the specific rates depending on the series. Holders of depositary receipts related to these preferred stocks will receive payments proportional to their holdings.
The Series M preferred stock, with a dividend rate of 6.300%, will be paid on August 15, 2024, and the payment for depositary receipt holders is set at $23.01786333 each. Similarly, Series T preferred stock, with a 6.250% dividend rate, will also be paid on August 15, with each depositary receipt holder receiving $31.25.
For Series U preferred stock, carrying a 5.000% dividend rate, the payment date is September 12, 2024, and depositary receipt holders will receive $25.00 each. The Series V preferred stock, with a 4.700% dividend rate, will be paid on July 30, 2024, with receipt holders receiving $23.50 each.
The dividends for Series W, X, Y, Z, AA, and BB preferred stocks, with rates ranging from 4.000% to 7.625%, are payable on various dates in August and September, with corresponding payments to depositary receipt holders varying from $9.6875 to $31.80 each.
This announcement reflects Citigroup's ongoing commitment to providing returns to its shareholders. The financial institution, which operates in nearly 180 countries, serves a broad range of customers, including corporations, governments, and individuals, offering a wide array of financial products and services.
The information regarding the dividends is based on a press release statement from Citigroup Inc.
In other recent news, Citigroup has been in the spotlight due to a series of significant developments. The company reported strong second-quarter earnings, with a net income of $3.2 billion and earnings per share of $1.52, surpassing analyst expectations. Additionally, Citigroup's revenues witnessed a 4% increase, driven by substantial growth in its Services, Markets, Wealth, and US Personal Banking divisions.
The bank has also settled with the Bourse de Montreal over allegations of inadequate reporting procedures on options contracts. As part of the settlement, Citigroup agreed to pay a fine of $138,000 and an additional $10,600 to cover related costs. This follows a recent fine of $136 million imposed by U.S. banking regulators due to data management issues.
In response to these developments, several analyst firms have adjusted their price targets for Citigroup. Piper Sandler raised its price target to $73 while maintaining an Overweight rating, reflecting confidence in the bank's turnaround efforts. Argus also increased its price target for Citigroup to $72, maintaining a Buy rating, and BMO Capital Markets revised its price target from $65 to $67, keeping a Market Perform rating.
However, Citigroup continues to face regulatory scrutiny, including actions by the Federal Reserve and the OCC linked to 2020 consent orders. Despite these challenges, the bank has demonstrated a commitment to returning capital to shareholders by adding approximately $1 billion to its third-quarter buyback guidance. These are among the recent developments concerning Citigroup Inc.
InvestingPro Insights
As Citigroup Inc. continues to demonstrate its commitment to shareholder returns with its recent dividend declaration, a closer look at some key financial metrics and InvestingPro Tips can provide investors with a deeper understanding of the company's financial health and market position.
With a robust market capitalization of $124.12 billion, Citigroup stands as a prominent player in the banking industry. Its dedication to shareholders is further underscored by an impressive track record of maintaining dividend payments for 14 consecutive years, showcasing a stable financial policy. This commitment is reflected in the company's dividend yield of 3.14% as of Q2 2024, which is attractive for income-focused investors.
Investors tracking Citigroup's performance will note that the company has experienced a large price uptick over the last six months, with a 6-month total return of 34.71%. The stock is also trading near its 52-week high, at 95.65% of this peak value, indicating a strong market sentiment.
However, it's important to consider the broader financial landscape. InvestingPro Tips reveal that Citigroup is quickly burning through cash and suffers from weak gross profit margins. Additionally, eight analysts have revised their earnings downwards for the upcoming period, signaling potential challenges ahead. These factors could impact the company's ability to sustain its dividend payments and growth trajectory in the long term.
For those looking to delve deeper into Citigroup's financials and future prospects, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/C. To make the most of these insights, readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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