Popular to raise dividend by 22%, buy back $500 million in stock this year

Popular Inc.
BPOP,
+2.58%
said Wednesday it expects to repurchase $500 million worth of its stock in 2022, and that it raised its quarterly dividend by 22%, to 55 cents a share from 45 cents. The Puerto Rico-based financial services company’s new dividend will be payable in the second quarter of 2022. Based on Tuesday’s stock closing price of $92.57, the new annual dividend would imply a dividend yield of 2.38%, compared with the implied yield for the S&P 500
SPX,
-1.42%
of 1.31%. The stock buyback plan represents about 6.8% of Popular’s market capitalization of about $7.39 billion. The stock, which was little changed in premarket trading, has run up 15.2% over the past three months, while the S&P 500 has gained 8.3%.