Shares of U.S. Bancorp (NYSE:USB) rose 1.2% to $45.27 in premarket trading following the announcement of a new $5 billion share repurchase program.
The program, set to begin on September 13, 2024, allows the bank to buy back shares in the open market or through privately negotiated transactions, with repurchases expected to start by early 2025.
Additionally, the company increased its quarterly dividend by 2%, bringing it to $0.50 per share.
This announcement comes as U.S. Bancorp shares have gained 3.4% year-to-date, as of the previous close.
The share buyback and dividend increase signal U.S. Bancorp’s confidence in its financial strength and commitment to returning value to shareholders.