First Horizon (FHN) DIvidends Date & History

Key Takeaways

• First Horizon (FHN) pays a quarterly dividend of $0.17 per share, or about $0.68 annualized.
• The stock's dividend yield is roughly 2.6%, a modest but competitive level for a regional bank.
• The payout ratio of about 32%–33% of earnings leaves ample room for dividend sustainability and future growth.
• Management raised the quarterly payout from $0.15 to $0.17 in early 2026, signaling renewed dividend growth.
• The dividend is well covered by both earnings and free cash flow, supporting its appeal to income and long-term investors.

Dividend Overview

First Horizon Corporation (FHN), a Memphis, Tennessee-based regional bank, pays a quarterly cash dividend. Its most recent declared dividend is $0.17 per share, and the next ex-dividend date is September 11, 2026, with a payment date of October 1, 2026. On an annualized basis, the payout comes to about $0.68 per share, translating to a dividend yield of approximately 2.6%.

First Horizon is best characterized as a company with a modest, steadily maintained dividend rather than a high-yield or aggressive dividend-growth name. Payments have been consistent for many years, and the bank has recently returned to raising its payout. For dividend investors, FHN offers a dependable quarterly income stream backed by a conservative earnings profile.

Dividend History and Growth

First Horizon has maintained a quarterly dividend for an extended period, demonstrating a commitment to returning capital to shareholders. For several years, the quarterly payout held steady at $0.15 per share. In early 2026, the company announced a $0.02 increase, lifting the quarterly dividend to $0.17 per share—a roughly 13% increase.

This marks a meaningful step forward for FHN's dividend story. After a lengthy period of flat payouts, the increase signals management's confidence in the bank's earnings and capital position. Longer-term dividend growth has been modest in recent years, but the recent raise suggests the company is positioning for more consistent annual increases as earnings grow. Investors should monitor whether the bank sustains this pattern of annual increases going forward.

Dividend Sustainability and Payout Ratio

First Horizon's dividend appears highly sustainable. The payout ratio stands at roughly 32%–33% of trailing earnings, meaning the bank distributes only about one-third of its net income as dividends. This is a conservative level that leaves substantial earnings retained for reinvestment, loan growth, and balance-sheet strength.

Cash-flow coverage is similarly supportive, with the dividend consuming roughly 31% of cash flow. Regional banks are also subject to regulatory capital requirements, including the Common Equity Tier 1 (CET1) ratio—a key measure of a bank's core capital relative to risk-weighted assets—and First Horizon's conservative payout approach supports a healthy capital cushion. Given its modest payout ratio, stable earnings, and disciplined capital management, the dividend appears well protected against normal earnings fluctuations.

Dividend Compared to Industry Peers

Within the regional banking sector, First Horizon's dividend yield of about 2.6% is broadly in line with, though somewhat below, the average for many financial companies that pay dividends. Some larger regional and money-center banks offer higher yields, while others—particularly those prioritizing share buybacks over dividends—offer lower ones.

What distinguishes FHN is the combination of a competitive yield and a notably low payout ratio. Many high-yielding peers distribute a larger share of earnings, leaving less flexibility to grow dividends during economic downturns. First Horizon's conservative payout provides a balance of current income and potential for future increases, positioning it favorably for investors seeking both stability and modest growth rather than maximum current yield.

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Is This Stock Attractive for Dividend Investors?

First Horizon is likely to appeal most to income-focused and conservative long-term investors who prioritize a reliable, well-covered dividend over maximum yield. Its payout ratio of roughly one-third of earnings provides a meaningful cushion, suggesting the dividend is not only sustainable but has room to grow over time. The recent increase from $0.15 to $0.17 per share indicates a willingness to return more capital as earnings expand.

However, investors seeking rapid dividend growth or very high current income may find FHN less compelling, as its yield is moderate and its dividend has grown slowly in recent years. As a regional bank, First Horizon is also sensitive to interest rates, credit conditions, and the economic health of its core markets in the southeastern United States. Overall, the stock is best suited to dividend investors who value stability, conservative capital management, and gradual income growth over time.

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