Old National Bancorp. Announces New Share Repurchase Plan & Dividend

Old National Bancorp. ONB has announced a new share repurchase program alongside quarterly cash dividends.Under the buyback plan, ONB will be able to repurchase up to $200 million worth of shares. The repurchase plan is set to expire on Feb. 28, 2026.This new program will replace the existing share repurchase plan, announced in February 2024.Prior to this, ONB announced a share repurchase plan in February 2023 authorizing the repurchase of up to $200 million of shares, which expired on Feb. 29, 2024.Old National Bancorp’s DividendApart from share repurchases, Old National Bancorp has announced a quarterly cash dividend of 14 cents per share. The dividend will be paid out on March 17, 2025, to shareholders of record as of March 5.ONB pays quarterly dividends regularly and has increased dividends once in the last five years. In January 2020, the bank announced a 7.7% dividend hike from the prior payout to 14 cents per share and maintained the same level since then.Considering Wednesday’s closing price of $24.30, its annualized dividend yield is 2.30%. Apart from being attractive to investors, the yield represents a steady income stream. The company has a dividend payout ratio of 30%.As of Dec. 31, 2024, Old National Bancorp’s cash and due from banks was $394.5 million. The cash levels are decent relative to other borrowings of $689.6 million.Hence, a decent balance sheet position, along with its earnings strength, indicates that ONB’s capital distributions are sustainable.ONB’s Zacks Rank & Price PerformanceShares of Old National Bancorp have risen 30.3% compared with the industry’s 18.2% growth in the past six months.Image Source: Zacks Investment ResearchCurrently, ONB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Similar Steps by Other Finance FirmsEarlier this month, Piper Sandler Companies PIPR announced a new share repurchase plan. The board of directors has approved the repurchase of up to $150 million worth of shares of PIPR’s outstanding stock.The buyback program will be effective immediately and expire on Dec. 31, 2026. Before this, a share repurchase authorization was announced in May 2022, which expired on Dec. 31, 2024. Under this, PIPR was authorized to buy back up to $150 million worth of shares.Similarly, last month, Prosperity Bancshares, Inc. PB announced a stock repurchase program, authorizing the repurchase of up to 4.8 million of its common stock. This program is set to expire on Jan. 21, 2026.Prior to this, PB announced a share repurchase plan authorizing a buyback of up to 4.7 million shares in January 2024, which expired on Jan. 16, 2025.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prosperity Bancshares, Inc. (PB): Free Stock Analysis Report Old National Bancorp (ONB): Free Stock Analysis Report Piper Sandler Companies (PIPR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks