Atlantic Union Raises Quarterly Dividend 8.1% to $0.40

Atlantic Union Bankshares Corporation raised its quarterly common dividend to $0.40 per share from $0.37, an 8.1% increase. AUB shares trade ex-dividend on November 13, 2026, and the payment is scheduled for November 27, 2026.

Why the dividend changed

The board’s declaration did not give a specific reason for the increase. The accompanying business figures, however, show that the decision followed a quarter of stronger earnings capacity and continued capital generation. Atlantic Union reported third-quarter net income available to common shareholders of $133.7 million, diluted earnings of $0.94 per share and adjusted operating earnings of $0.96 per share. Chief Executive John Asbury cited “healthy loan growth, strong credit quality and continued progress in expanding our earnings capacity.” Atlantic Union’s third-quarter results

Net interest income increased from the second quarter as loan growth and acquisition-related accretion outweighed higher funding costs. The fully taxable-equivalent net interest margin declined as customer deposit, brokered deposit and borrowing costs rose. Credit trends remained supportive, with the provision for credit losses falling from both the previous quarter and the year-earlier period. Atlantic Union’s third-quarter results

Management has described its capital priorities as funding organic growth first, followed by returning capital through dividends and share repurchases. The company repurchased $62.5 million of common stock during the third quarter while keeping regulatory capital ratios above well-capitalized requirements. Third-quarter earnings-call transcript

The increase is a regular quarterly dividend, not a special distribution or split adjustment. Atlantic Union completed its acquisition of Sandy Spring Bancorp in 2025, and management said the related systems conversion was complete and the integration phase was largely behind the company. That makes the increase better viewed as part of ordinary capital allocation after the integration rather than a mechanical consequence of the merger. Atlantic Union’s 2025 annual report

Dividend track record

The new rate extends Atlantic Union’s dividend-growth streak to 16 consecutive years. The last annual cut occurred in 2009, placing the current record after the stress experienced by regional banks during the financial crisis.

Recent payments show a stair-step pattern rather than frequent small adjustments. The quarterly rate remained at $0.34 through the August 4, 2025, ex-dividend date, moved to $0.37 for November 14, 2025, and stayed there through August 7, 2026. The latest increase takes the rate to $0.40 and the annualized dividend to $1.60 per share.

Full-year distributions increased from $1.00 in 2020 to $1.09 in 2021, $1.16 in 2022, $1.22 in 2023, $1.30 in 2024 and $1.39 in 2025. The annual increases over that period ranged from 5.2% to 9.0%, while five-year dividend growth was 6.3% annual growth. The pattern indicates consistent annual expansion without requiring an increase every quarter.

Is the dividend covered?

The dividend consumes 43% of earnings. That payout ratio indicates earnings cover the distribution with capacity retained for lending, capital requirements, acquisitions and repurchases. It also provides context for the 8.1% increase: the board raised the payment while keeping less than half of earnings committed to the common dividend.

SmarterDividends rates the dividend A with a safety score of 87. That falls within the very safe range of 80-100, reflecting the earnings payout ratio, payment history and current financial profile. The grade does not eliminate the risks facing regional banks, including deposit-cost pressure, credit deterioration and regulatory capital requirements, but it indicates that the present dividend is strongly covered under current conditions.

Yield and valuation

At a share price of $39.27, the $1.60 annualized dividend produces a 4.07% forward yield. That is below the Financial Services sector median forward yield of 5.90%. The lower relative yield means AUB currently generates less dividend income per dollar invested than the sector median, despite its above-average safety grade.

SmarterDividends estimates fair value at $64.05 and classifies the shares as undervalued, representing 63% upside to that estimate. The estimate is a valuation comparison, not a price target or forecast. The stock’s one-year price return was a 16.1% gain, while 100 shares would generate $160.00 in annualized dividend income at the new rate.

What to watch

The immediate milestone is the November 13, 2026, ex-dividend date, followed by payment on November 27, 2026. Investors buying on or after the ex-dividend date will not receive this quarterly distribution.

Operating attention will center on funding costs, loan growth, credit quality and capital allocation. Management’s updated outlook placed full-year fully taxable-equivalent net interest income near the low end of its stated range and also put the fully taxable-equivalent net interest margin near the low end of guidance. The outlook assumed continued common-share repurchases in the fourth quarter while acknowledging that interest-rate movements were affecting accumulated other comprehensive income and tangible book value. Atlantic Union’s third-quarter investor presentation

Those items matter because the dividend competes with organic growth and repurchases for capital. The next quarterly report will show whether earnings coverage, deposit pricing and regulatory capital remain consistent with the board’s higher regular payment.