U.S. Bancorp Boosts Dividend, Names CEO as Chairman

U.S. Bancorp (USB) said Tuesday it would boost its dividend by 6.25% to $1.70/year. It also elected CEO Richard Davis as chairman of the board, replacing the retiring Jerry A. Grundhofer. Before joining USB, Davis was VP of Bank of America (BAC). Grundhofer had been seen as more likely to sell the firm to a larger bank until Davis took over as CEO in July 2006; he has since downplayed the odds of serious dealmaking. In October, UBS posted Q3 net income of $1.18 billion ($0.67/share), down slightly from $1.2 billion ($0.66) a year ago (full story). In November, the bank said it would restate Q3 earnings to reflect a $115 million charge related Visa's IPO next year, but said it expects its share of the planned IPO's proceeds should more-than offset the charge. First Call says analysts rate USB a hold, with a mean 12-month price target of $35.35. Shares fell 2.2% Tuesday to $32.85.

Sources: Press release, Wall Street Journal
Additional Reading: U.S. Bancorp Q3 2007 Earnings Call Transcript

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