People's United Financial operates over 400 bank branches across New England and New York State. Photo courtesy JeepersMedia/flickr.com.
About People’s United Financial, Inc.
People’s United Financial, Inc. is a bank and financial holding company for People’s United Bank, which operates bank branches throughout New England and southeastern New York State. The company has over 400 branches across Connecticut, New York, Massachusetts, New Hampshire and Maine; included in this are nearly 150 full-service bank branches co-located in Stop & Shop supermarkets in Connecticut and New York, which hold 14% of the company’s total deposits. People’s United has nearly 5,000 full-time employees.
The company provides a variety of traditional banking services, including taking deposits, issuing loans and providing wealth management services to individual, corporate and municipal customers. Non-traditional banking services, provided through non-banking subsidiaries, include brokerage, life insurance and equipment financing services. The company’s businesses are divided across two segments: Commercial Banking and Retail Banking.
In February of this year, the company converted from a Savings & Loan holding company to a bank holding company in order to further the company’s strategic objective, which is to become a diversified commercial banking company. People’s United does not expect the change to have any material effect on operations.
The company is a member of the S&P 500 index and S&P’s High Yield Dividend Aristocrats index, and trades under the ticker symbol PBCT.
People’s United Financial’s Dividend and Stock Split History
People’s United Financial and its predecessor companies have increased dividends annually since 1993. The company usually announces dividend increases in mid-April, with the stock going ex-dividend at the end of April.
People’s United has compounded its payout at an average rate of 1.5% over the last 5 years and 2.7% over the last 10 years.
People’s United and its predecessor companies have split their stock three times since beginning their record of annual dividend growth. Each split was 3-for-2; they occurred in May 1997, May 2004 and May 2005.
People’s United Financial’s Direct Purchase and Dividend Reinvestment Plans
People’s United has both direct purchase and dividend reinvestment plans. The fee structure, while not the best among dividend growth companies, is not unusually burdensome for investors. When investing for the first time, there is a one-time $15 enrollment fee to establish an account. The minimum initial investment for new investors is $250; for additional investments the minimum is $100. The dividend reinvestment plan does allow for full and partial reinvestment of dividends.
While People’s United picks up all costs associated with dividend reinvestment, there is a $2 fee for each purchase of shares by automatic bank debit and a $5 fee for each purchase of shares by check; the company pays the per share fee in these cases.
When you sell your shares in People’s United, you’ll pay a transaction fee of between $15 and $25, depending on the type of sell order, plus a commission of 12 cents per share. Sale requests completed over the phone by a representative will have an additional $15 deducted from the proceeds.
Helpful Links
People’s United Financial, Inc.’s Investor Relations Website
Current quote and financial summary for People’s United Financial, Inc. (finviz.com)