First Ban (FBP) DIvidends Date & History

Key Takeaways

• First BanCorp pays a quarterly dividend of $0.20 per share, equating to an annualized $0.80 per share and a dividend yield of approximately 2.92% as of mid-2026.
• The company has increased its dividend for seven consecutive years, with a five-year compound annual growth rate (CAGR) exceeding 23% — among the strongest in the regional banking sector.
• The payout ratio stands at a conservative 33.75% of earnings and roughly 27% of free cash flow, signaling ample room for future dividend increases.
• A robust Common Equity Tier 1 (CET1) capital ratio of 16.67% and a low debt-to-equity ratio reinforce the dividend's sustainability.
• The stock pairs its growing dividend with an active $200 million share repurchase program, reflecting broad-based commitment to returning capital to shareholders.

Dividend Overview

First BanCorp (FBP), the bank holding company for FirstBank Puerto Rico, has evolved from a modest dividend payer into a compelling dividend growth story within the regional banking space. The company distributes a quarterly cash dividend, most recently $0.20 per share, which annualizes to $0.80 per share. At prevailing market prices, this translates to a dividend yield near 2.92%. While this yield does not place FBP in the high-yield category, the company's emphasis on steadily raising payouts positions it firmly as a dividend growth stock. The most recent ex-dividend date was May 28, 2026, with the payment distributed on June 12, 2026. First BanCorp pays dividends quarterly, following a predictable schedule that income-oriented investors can rely on for regular cash flow.

Dividend History and Growth

First BanCorp's modern dividend track record began in late 2018, when the bank reinstated quarterly payouts at just $0.03 per share following a lengthy suspension after the 2008 financial crisis. Since then, the dividend trajectory has been remarkably consistent. The company raised its quarterly payout from $0.05 in 2019–2020 to $0.07 in early 2021, $0.10 by late 2021, $0.12 in 2022, $0.14 in 2023, $0.16 in 2024, $0.18 in 2025, and $0.20 in early 2026. The most recent increase — an 11.1% boost announced in January 2026 — extended the dividend growth streak to seven consecutive years. Over the past five years, the dividend has grown at a CAGR of approximately 23% to 29%, placing FBP near the top of its industry peer group for dividend growth rates. This pattern signals management's confidence in the bank's earnings trajectory and its willingness to share profits directly with shareholders.

Dividend Sustainability and Payout Ratio

The sustainability of First BanCorp's dividend is supported by a conservative payout ratio and a strong balance sheet. Based on trailing twelve-month earnings per share (EPS) of approximately $2.06, the payout ratio sits at roughly 33.75%. Measured against free cash flow — which totaled approximately $437.5 million in fiscal 2025 — the dividend consumes an even slimmer portion, around 27%. Both metrics are well below the levels that typically raise concerns about dividend durability. Additionally, First BanCorp's CET1 capital ratio — a key measure of a bank's core capital strength relative to risk-weighted assets — stood at 16.67% as of late 2025, comfortably exceeding regulatory requirements. The company's total long-term debt has been reduced significantly, from $662 million in fiscal 2023 to $290 million by year-end 2025, while cash and equivalents totaled $658.6 million — meaning the bank holds more cash than debt. A return on equity (ROE) consistently above 17% further demonstrates that FBP generates strong profits relative to shareholder capital, providing a reliable foundation for continued dividend payments.

Dividend Compared to Industry Peers

Within the regional banking sector, First BanCorp's dividend profile stands out for its growth momentum more than its current yield. The company's 2.92% yield sits above the Financial Services sector average of approximately 2.67%, though it trails some higher-yielding regional bank peers. By comparison, Puerto Rico-based competitor Popular, Inc. (BPOP) offers a yield near 2.5%, while OFG Bancorp (OFG) yields roughly 2.9%. On the U.S. mainland, regional banks such as First Hawaiian (FHB) and Hancock Whitney (HWC) carry yields in the 3.1% to 4.2% range. Where FBP genuinely excels is in payout growth: its five-year dividend CAGR of roughly 23.5% ranks in the top 10% of the regional banking peer group, according to industry data. Meanwhile, its payout ratio of approximately 34% is notably lower than the Financial Services sector average of 39.1%, suggesting First BanCorp has more headroom than many peers to continue raising its dividend. The combination of a competitive yield, a below-average payout ratio, and above-average dividend growth makes FBP a distinctive name in the regional bank income universe.

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Is This Stock Attractive for Dividend Investors?

First BanCorp is likely to appeal most to dividend growth investors and total-return-oriented income seekers rather than those requiring high current yields. With a yield under 3%, the stock does not compete with high-yield alternatives in sectors such as REITs (Real Estate Investment Trusts) or energy MLPs (Master Limited Partnerships). However, the company's seven-year streak of dividend increases, double-digit annual dividend growth, and exceptionally low payout ratio make a compelling case for investors who prioritize payout growth and long-term compounding. The stock may also suit investors comfortable with regional bank exposure, particularly those who recognize First BanCorp's dominant market position in Puerto Rico and its expanding footprint in Florida and the U.S. Virgin Islands. Risks to consider include geographic concentration in Puerto Rico's economy, sensitivity to interest rate cycles — which affect net interest margin (NIM), or the spread between lending income and deposit costs — and potential credit deterioration during economic downturns. Nonetheless, the bank's strong capital ratios and conservative leverage provide a cushion against adversity. For patient, long-term investors who value dividend growth alongside capital returns (the company also maintains an active buyback program), FBP represents an analytically interesting income-plus-growth proposition within the regional banking landscape.

Disclaimer

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