🔻 On April 2, 2025, Raymond James shifted its rating on Truist Financial from ‘Outperform’ to ‘Market Perform.’ The downgrade follows Truist’s cautious tone in its revised Q1 outlook, which flagged headwinds across loan growth and fee-based revenue, leading analysts to question the pace of profitability improvement in the near term.
🔻 A major concern is that while Truist is actively working to strengthen its capital base—highlighted by the sale of Truist Insurance Holdings—these initiatives may not deliver immediate bottom-line results. The broader economic picture isn’t helping either. With the Atlanta Fed now projecting a 1.8% drop in Q1 GDP, Truist could struggle to hit its full-year financial targets.
🔻 While the bank is making strategic investments and restructuring moves, Raymond James believes the execution risk is too high in the current macro climate to justify an “Outperform” rating. The downgrade signals a more neutral stance while the bank works through its transitional phase.
💸 Dividend Fundamentals
🟢 Truist remains a strong dividend payer, offering $2.08 annually per share—yielding around 5.05% as of the end of Q1 2025.
🟢 The forward payout ratio stands at a reasonable 45.24%, suggesting the dividend is sustainable even amid current challenges.
🟢 Its most recent ex-dividend date was February 14, 2025, showing consistency in shareholder payouts.
Despite near-term uncertainty, $TFC continues to offer investors reliable income. However, capital appreciation could be limited until Truist proves it can execute through macroeconomic headwinds.