Zions Raises Quarterly Dividend 6.7% to $0.48

Zions Bancorporation, National Association increased its quarterly common dividend 6.7% to $0.48 a share from $0.45. The latest payment traded ex-dividend on August 13, 2026; at the new rate, the annual dividend is $1.92 a share.

Why the dividend changed

Zions did not give a specific reason for the increase in its declaration. The board paired the higher regular dividend with authorization for up to $75 million of common-stock repurchases during the third quarter, part of a previously authorized $300 million repurchase target for 2026. The combination indicates that the board viewed the bank’s capital position as sufficient to support both forms of shareholder distribution. Zions dividend and repurchase announcement

The decision followed a stronger second quarter. Zions reported net earnings applicable to common shareholders of $452 million, or $3.05 per diluted share. Results included a $215 million gain on Visa shares and $37 million of net unrealized gains from small-business investment company holdings. Excluding net equity investment gains, earnings per share rose 10% from the year-earlier period to $1.74. Zions second-quarter earnings release

The underlying banking business also improved. Net interest income rose 4% from a year earlier to $677 million as lower funding costs offset pressure from declining asset yields. Loans and leases increased 3%, deposits grew 4%, and classified loans declined. CEO Harris Simmons highlighted the growth in customer-related fee income, loans and deposits, along with continued solid credit performance. Zions second-quarter earnings release

Capital provided additional room. Zions estimated its common equity tier 1 ratio at 11.8%, compared with 11.0% a year earlier, while tangible book value per common share increased 22%. The quarterly filing also said the bank had $1.7 billion of retained net profits available for distribution under the applicable regulatory earnings limitation. Zions second-quarter Form 10-Q

Dividend track record

The increase extends Zions’ dividend-growth streak to 13 consecutive years. The last annual cut occurred in 2009, placing the current run in the period following the global financial crisis rather than across it.

The annual payment history shows steady but uneven growth. Total dividends rose from $1.36 a share in 2020 to $1.44 in 2021, $1.58 in 2022, $1.64 in 2023, $1.66 in 2024 and $1.76 in 2025. The annual increase slowed to 1.2% in 2024 before accelerating to 6.0% in 2025. Dividend growth over five years annualized at 5.3%.

Recent quarterly payments show the same stepwise pattern. The rate was $0.43 on February 13 and May 15, 2025, then $0.45 on August 14 and November 13, 2025, and February 12 and May 14, 2026. The move to $0.48 on August 13, 2026 represents another discrete increase rather than a change in the quarterly payment schedule.

Is the dividend covered?

The dividend consumes 23% of earnings. That is a relatively restrained payout, leaving most reported profit inside the bank for loan growth, capital requirements, credit costs and other uses.

SmarterDividends rates the dividend A, with a safety score of 89. That falls within the very safe range of score 80-100. In plain terms, the grade reflects substantial earnings coverage and a long record of annual increases. It does not make the payment guaranteed, because bank dividends remain subject to earnings, capital levels, credit performance and regulatory constraints.

The second-quarter capital figures reinforce that assessment. The higher common equity tier 1 ratio, growth in tangible book value and decline in classified loans provided a stronger backdrop for the board’s decision. The unusually large investment gains boosted reported earnings, however, so coverage based on recurring banking results remains the more useful comparison.

Yield and valuation

At a share price of $62.75, the $1.92 annual dividend produces a 3.06% forward yield. That is below the Financial Services sector median forward yield of 5.70%, meaning Zions offers less current dividend income than the sector midpoint despite the increase.

SmarterDividends estimates fair value at $52.02 and classifies the shares as overvalued, with 20% downside to fair value. The valuation assessment is separate from dividend safety: the A grade addresses the likelihood that the payment can be sustained, while the fair-value estimate compares the share price with an estimate of underlying value.

What to watch

Zions is scheduled to report third-quarter results on October 19, 2026. The release will provide the next readings on recurring earnings after the second quarter’s investment gains, as well as net interest income, deposit costs, loan growth, credit quality and regulatory capital. Zions 2026 earnings calendar

Investors can also track the integration of the Basis Multifamily Finance agency-lending platform. Zions completed the acquisition after the quarter, adding participation in Fannie Mae and Freddie Mac multifamily programs and associated mortgage-servicing rights. Management described the business as an expansion of the bank’s commercial real estate and capital-markets capabilities. Zions Basis acquisition announcement

The next board declaration will show whether Zions maintains the $0.48 quarterly rate while funding the new business, managing credit risk and using its repurchase authorization.