First Horizon (FHN) DIvidends Date & History

Key Takeaways

• First Horizon Corporation (FHN) offers a forward dividend yield of approximately 2.93% with a quarterly payout of $0.17 per share.
• Recent 13% dividend increase to $0.17 signals confidence in earnings growth and capital returns.
• Payout ratio around 33-36% on EPS of $1.87 (TTM) indicates strong coverage and sustainability.
• Robust capital position with CET1 ratio (Common Equity Tier 1, a key measure of bank capital strength) at 10.6% supports ongoing dividends and buybacks.
• Adjusted ROTCE (Return on Tangible Common Equity, a profitability metric for banks) of 14.2% in 2025 approaches 15%+ target, bolstering dividend appeal.
• Total shareholder returns exceeded $1.2 billion in 2025 via dividends and $894 million in repurchases.

Dividend Overview

First Horizon Corporation (FHN), a regional bank holding company, maintains a consistent quarterly dividend policy, distributing $0.17 per share most recently, for an annualized forward dividend of $0.68. This equates to a yield of about 2.93% at current prices around $23-24. The ex-dividend date for the latest payment was March 13, 2026, with payment on April 1, 2026. FHN positions itself as a modest dividend growth stock rather than a high-yield play, balancing payouts with share repurchases to return capital efficiently. With a history of steady payments since resuming post-financial crisis, the bank appeals to income investors seeking reliability in the regional banking sector. This profile aligns with FHN's focus on diversified financial services across the Southeast and Midwest.

Dividend History and Growth

First Horizon has demonstrated dividend consistency with quarterly payments, holding steady at $0.15 per share through 2024 and most of 2025 before raising to $0.17 in early 2026—a 13% increase announced January 27, 2026. Recent history includes: March 13, 2026 ($0.17), December 12, 2025 ($0.15), September 12, 2025 ($0.15), and prior quarters at $0.15. Over the past decade, dividends have grown at a compound annual rate of approximately 9.6%, recovering from cuts during the 2008 crisis. While not a Dividend Aristocrat with 25+ years of increases, FHN's recent hike and $307 million in common dividends declared for 2025 reflect a long-term strategy prioritizing shareholder returns amid improving profitability. No cuts since 2011 underscore payment reliability.

Dividend Sustainability and Payout Ratio

FHN's dividend appears highly sustainable, with a payout ratio of 33-36% based on 2025 EPS of $1.87 (TTM), leaving ample room for growth or reinvestment. Earnings coverage is strong, supported by net income available to common shareholders of $956 million in 2025. Capital ratios remain solid: CET1 at 10.64%, Tier 1 at 11.5%, and total capital at 13.4%, exceeding regulatory requirements. The bank generated robust returns with adjusted ROTCE of 14.2%, nearing its 15%+ target. Debt levels are manageable for a bank, with a focus on deposits ($67.5 billion) funding operations. Credit quality is stable, with net charge-offs at 19 basis points and zero provision for credit losses in Q4 2025. Combined with $1.2 billion in total capital returns (including buybacks), these metrics affirm the dividend's security.

Dividend Compared to Industry Peers

First Horizon's 2.93% yield is competitive yet modest among regional bank peers. For context, HBAN (Huntington Bancshares) yields around 3.8%, KEY (KeyCorp) also near 3.8%, RF (Regions Financial) about 3.67%, and FITB (Fifth Third Bancorp) approximately 2.97%. FHN's lower payout ratio (33-36%) versus peers like HBAN (44.6%) and KEY (53.9%) highlights superior coverage, potentially enabling future growth. While not the highest yielder, FHN's balance of yield, growth (recent 13% hike), and capital strength makes it attractive relative to sector averages around 2.5-3.0%.

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Is This Stock Attractive for Dividend Investors?

First Horizon Corporation (FHN) suits conservative income investors and those favoring dividend growth in regional banking. Its 2.93% yield provides steady quarterly income, backed by a low 33-36% payout ratio and strong earnings coverage from $1.87 EPS. The recent 13% hike and history of 9.6% ten-year growth appeal to investors seeking moderate appreciation alongside payouts. FHN's CET1 ratio of 10.6% and ROTCE nearing 15% offer stability amid economic cycles, differentiating it from higher-yield peers with elevated payouts. Long-term holders may value the balanced capital return strategy—$1.2 billion deployed in 2025 via dividends and buybacks—supporting compounding. However, regional banks face interest rate and credit risks, so FHN fits portfolios prioritizing sustainability over maximum yield. Balanced investors tracking Southeast growth could find it compelling, though sector volatility warrants diversification.

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