Fifth Third Bancorp Raises Dividend 8%

Shares of Fifth Third Bancorp rallied 2% in afternoon trade Tuesday, after the bank said it was increasing its dividend by 8%. The new quarterly dividend of 14 cents a share, up from 13 cents a share, will be payable Jan. 17 to shareholders of record on Dec. 30. Based on the stock's current price of $27.77, the new annual dividend rate of 56 cents a share represents a dividend yield of 2.02%, compared with the yield of 1.97% for the SPDR Financial Select Sector ETF and the aggregate dividend yield for the S&P 500 of 2.08%, according to FactSet. The stock has run up 38% year to date, while the financial ETF has climbed 22% and the S&P 500 has gained 11%.