Regions Financial's Liquidity Cushion: Can It Sustain Capital Returns?

Regions Financial RF continues to return capital to shareholders through dividends and share repurchases. In recent years, the company has gradually strengthened its payout profile while maintaining a manageable balance sheet.

In July 2025, the company increased its quarterly common stock dividend by 6% to 26 cents per share. Over the past five years, RF has increased its dividend five times, delivering a five-year annualized dividend growth rate of 13.03% and a payout ratio of 45%. Based on yesterday’s closing price of $28.44, its annualized dividend yield stands at 3.73%, higher than the industry average of 2.32%.

Dividend Yield

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Additionally, the company’s dividends have grown at a compounded annual rate exceeding 10% over the past six years, reflecting a consistent upward trend in shareholder distributions. In 2026, it plans to maintain a dividend payout ratio in the range of 40–50% of earnings. This suggests that RF is following a structured and earnings-aligned approach rather than pursuing aggressive dividend hikes.

Apart from dividends, Regions Financial has been actively executing share repurchases. On Dec. 10, 2025, the board approved a new authorization to repurchase up to $3 billion of common stock, effective from Jan. 1, 2026, through Dec. 31, 2027. As of Dec. 31, 2025, nearly $833.2 million remained available under the repurchase program launched in April 2022.

These capital returns are supported by a solid liquidity position. As of Dec. 31, 2025, Regions Financial reported total debt of $4.9 billion, including both long- and short-term borrowings, while liquidity sources totaled $67.9 billion. This robust liquidity position significantly reduces refinancing and repayment risks, even in a weaker economic environment, while providing ample room to support growth initiatives and shareholder payouts.

Together, Regions Financial’s consistent dividend growth, ongoing buybacks and strong liquidity base reflect a balanced capital deployment strategy. With modest leverage and ample liquidity resources, the company appears capable of sustaining its capital return activities in the future.

RF’s Peers Capital Distribution Plan

Similar to Regions Financial, its peers, BOK Financial BOKF and SouthState SSB, continue to maintain active capital distribution strategies, supported by earnings strength and stable capital positions.

BOK Financial has been raising dividends annually. In October 2024, it increased its quarterly dividend by 3.6% to 57 cents per share. On July 29, 2025, the board approved a new repurchase authorization of up to 5 million shares, replacing the November 2022 program. As of Dec. 31, 2025, nearly 2 million shares remained available under the plan. The company had total debt of $4.6 billion, whereas cash and due from banks, as well as interest-bearing cash and cash equivalents, aggregated to $1.1 billion. Although BOK Financial has a relatively lower liquidity buffer, its capital distribution activities appear manageable, backed by earnings strength and a favorable payout ratio.

Likewise, SouthState maintains a steady capital return framework. Since 2020, it has been increasing its dividend annually, with the latest hike in July 2024. Apart from regular dividend payments, the company authorized a new repurchase of up to 5.56 million shares in January 2026, replacing the prior February 2025 plan, under which 560,000 shares remained available as of Dec. 31, 2025. The company had $1.7 billion in total debt, which is significantly lower than $3.2 billion in cash and cash equivalents. Given its robust liquidity position, SouthState’s capital distribution activities appear sustainable in the near term.

RF’s Price Performance and Zacks Rank

Over the past three months, shares of RF have gained 11.7%, outperforming the industry’s 10.1% growth.

Price Performance

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Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.