Though executives at US Bancorp, owner of US Bank, remain cautious and recently warned that the bank will wait to digest recent U.S. and global regulatory changes before increasing its dividend, investors are confident that the bank will be among the first to reward shareholders with a substantially improved payout.
The regional bank enjoys a large footprint in retail banking and has been able to maintain strong levels of profitability over the last several years, said Chris Bingaman, a portfolio manager at Diamond Hill Capital Management, which owns shares of the bank.
Bingaman added that Minneapolis-based US Bancorp is poised to gain market share as it expands its network in the 24 states where it operates and looks for opportunities to acquire other banks in those regions.
And with the recent release of Basel III rules on capital requirements, the bank is one step closer to raising its quarterly dividend from its current 5 cents per share.
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