Key Takeaways
💰 Fulton Financial offers a forward dividend yield of 4.16% with a conservative 41% payout ratio, supported by consistent dividend growth near its five-year average of 3.92%.
📈 The bank generated $416 million in operating cash flow and $374 million in free cash flow over the trailing twelve months, reinforcing the sustainability of its dividend.
📊 Analysts maintain a Hold consensus with a $19.83 average price target, reflecting steady performance and balanced expectations following stronger-than-expected earnings.
Last Update 5/6/25
Fulton Financial Corporation (FULT), a regional bank based in Pennsylvania, continues to stand out for its consistent dividend performance, conservative management, and solid financial footing. With over 200 branches across the Mid-Atlantic and a legacy rooted in community banking, Fulton has maintained a disciplined approach to balance sheet management and shareholder returns. Its current dividend yield of 4.16%, paired with a payout ratio just above 41%, positions it as a reliable income generator supported by stable earnings and strong free cash flow.
Recent quarterly results reflect operational strength, highlighted by \$416 million in operating cash flow and continued improvements in efficiency. The stock trades at a reasonable 10.17x earnings with a price-to-book under 1, offering value alongside income. Management has expressed confidence in the bank’s trajectory, citing strong deposit growth, improved asset quality, and a strategic focus on long-term value. For income-focused investors, Fulton presents a stable profile with manageable risks and steady execution.
🧮 Key Dividend Metrics
📈 Dividend Yield: 4.16% (Forward)
💰 Annual Dividend: $0.72 per share
📆 Dividend Growth (5-Year Avg Yield): 3.92%
📊 Payout Ratio: 41.18%
🛡️ Earnings Coverage: EPS of $1.70 (ttm)
📅 Recent Dividend Date: April 15, 2025
🧾 Ex-Dividend Date: April 1, 2025
🔄 Dividend Frequency: Quarterly
Recent Events
Fulton’s recent performance paints a picture of quiet strength. In its latest quarter, the company showed year-over-year revenue growth of nearly 25%, pushing its total revenue to $1.15 billion over the trailing twelve months. Net income came in at $278.5 million, and earnings per share reached $1.70. Those are solid numbers that demonstrate the bank’s ability to navigate a still-evolving interest rate landscape.
With a current market cap hovering around $3.15 billion and the stock trading at just over 10x earnings, Fulton is priced at a level that feels reasonable for a stable income stock. The forward price-to-earnings ratio is almost identical, suggesting earnings aren’t expected to swing wildly in either direction. That kind of stability is exactly what income-focused investors typically seek.
What really stands out is the bank’s conservative financial posture. Return on equity is just under 10%, while return on assets sits close to 1%. Neither number is going to turn heads in a growth fund, but they show that Fulton is doing a competent job deploying capital without taking undue risk.
There’s also a healthy amount of cash on the balance sheet—around $1.22 billion, or $6.70 per share. That’s a comfortable cash position considering the stock trades just above $17. It gives the company flexibility and signals a buffer if market conditions get choppy again.
Dividend Overview
Fulton’s dividend is a bright spot for yield-seeking investors. The forward yield of 4.16% makes it a strong contender in the regional banking space. That payout isn’t unusually high—it’s just well-balanced. Investors aren’t sacrificing financial safety to reach for yield here.
What’s impressive is the discipline in how management handles distributions. The company isn’t overextending itself. The current payout ratio of just over 41% means there’s plenty of earnings left over to reinvest or save for rainy days.
Dividends are paid quarterly, with the most recent one distributed on April 15. If you owned the stock before the ex-dividend date on April 1, that cash would have landed in your account. It’s a reliable cadence that’s been maintained quarter after quarter.
No sudden increases, no dramatic cuts. Just a steady return that long-term investors can plan around. It’s the kind of dividend policy that fits well in a retirement portfolio or any strategy focused on consistent income.
Dividend Growth and Safety
While the dividend growth rate hasn’t been aggressive, it has been quietly consistent. Over the past five years, the average yield has hovered right around 3.9%, which tells you that Fulton has managed to keep shareholders well-compensated even through market cycles. The current yield at 4.16% nudges a bit higher, helped in part by recent softness in the stock price.
The safety of that dividend is another story altogether—and in a good way. With earnings per share at $1.70 and a conservative payout, there’s a comfortable margin for continued payments. That’s backed up by more than $400 million in operating cash flow over the past year. In other words, Fulton isn’t stretching to maintain its yield.
From a debt standpoint, the company carries $2.19 billion, but it’s counterbalanced by that $1.22 billion in cash and a measured operating structure. There’s no sign of stress in the financials, and that makes the dividend look all the more secure.
Another point worth noting is the stock’s behavior over the past year. With a 52-week range between $14.33 and $22.49, the price is sitting closer to its recent lows. For yield-oriented investors, that can be an opportunity. The lower price means a slightly better yield without waiting for a payout hike.
And finally, there’s the volatility—or lack thereof. Fulton’s beta is just 0.78. It doesn’t swing wildly with the broader market, and that’s exactly what you want when your goal is reliable, repeatable income.
Cash Flow Statement
Fulton Financial’s cash flow statement for the trailing twelve months shows a business operating with healthy fundamentals. Operating cash flow reached $416.6 million, an improvement from the prior year and a reflection of steady core banking activity. Free cash flow also came in strong at $374.1 million, leaving the bank with a solid foundation to support dividends and reinvest in operations without strain. This strength in operational cash generation is particularly important for a regional bank, especially given the current rate environment.
On the investing side, cash flow turned sharply positive at $1.63 billion. This reversal from negative investing cash flows in prior years suggests a shift, likely involving large-scale repositioning of securities or asset sales. Meanwhile, financing cash flow showed a net outflow of $1.53 billion, driven primarily by the repayment of $2.12 billion in debt. That level of repayment signals an aggressive deleveraging effort. Despite this, Fulton ended the period with over $1.06 billion in cash, almost double the previous year’s ending position. The ability to manage these shifts while maintaining liquidity underscores a disciplined approach to capital allocation.
Analyst Ratings
Fulton Financial Corporation has recently seen a mix of analyst sentiment, suggesting a cautiously positive outlook. 🟢 In April 2025, Janney Montgomery Scott upgraded the stock from Neutral to Buy, assigning a price target of $19.50. This move was driven by stronger-than-expected first-quarter results, particularly solid net interest income and a stable margin environment. Analysts appreciated the bank’s ability to maintain financial discipline, even as industry peers face compression in lending profitability.
🔄 Meanwhile, Keefe, Bruyette & Woods adjusted their stance by lowering the price target from $24.00 to $21.00 but kept a Market Perform rating. Their concerns centered around the long-term earnings trajectory and broader economic pressures that could limit upside potential in the near term. They acknowledged Fulton’s strong fundamentals but expressed caution about external challenges impacting the sector.
🔻 Piper Sandler also trimmed their price target slightly, from $22.00 to $20.00, emphasizing the need for more consistent earnings before turning more constructive on the stock. While they didn’t change the rating, the lowered target suggests a preference to see continued operational momentum.
📊 The current consensus among analysts leans toward a Hold rating, with an average 12-month price target of around $19.83. This reflects moderate upside, based on stable performance and a conservative, well-managed balance sheet.
Earning Report Summary
Solid Start to 2025
Fulton Financial kicked off 2025 with a strong quarter, reporting net income of $90.4 million, which breaks down to $0.49 per diluted share. On an adjusted basis—excluding a few one-time costs—earnings were even better at $0.52 per share. That’s a four-cent bump from the previous quarter, and it came from a mix of smart cost control and steady core performance. The bank’s net interest margin held at 3.43%, which is pretty steady considering recent shifts in short-term rates.
Leadership was quick to highlight the efficiency gains too. Operating expenses were trimmed by over $27 million, bringing total non-interest expenses down to $189.5 million. That pushed the efficiency ratio to a healthier 56.7%. For a regional bank, that’s a solid place to be—showing Fulton isn’t letting inflation or operational overhead get out of hand.
Deposit Growth and Asset Quality
Deposits grew by just over $300 million in the quarter, not from outside funding but from core customer activity. That kind of organic growth speaks to solid trust and retention across their markets. It also helps to see asset quality trending in the right direction. Non-performing assets ticked down to 0.62% of total assets, an improvement from the previous quarter. The allowance for credit losses held firm at $379.7 million, or 1.59% of total loans, and charge-offs remained low.
CEO Outlook
Curtis Myers, Fulton’s CEO, seemed upbeat in his comments on the quarter. He pointed to the company’s strong operating earnings and noted that this kind of start gives them good footing for the rest of the year. The overall message from leadership was about staying disciplined—keeping a long-term focus even as the economic picture stays a bit murky. That tone of measured optimism feels fitting for a bank that isn’t chasing big risks.
Fulton also made note of its capital strength, with the common equity tier 1 ratio now up to 11.0%. It’s a number that gives the company plenty of flexibility, whether that’s to invest, lend, or return capital to shareholders. Overall, it was a clean quarter that showed off Fulton’s consistency—something dividend and income investors can appreciate.
Management Team
Fulton Financial’s leadership team reflects a steady, no-nonsense approach. At the top is CEO Curtis J. Myers, who’s been with the company for decades and clearly understands the markets Fulton operates in. His background in community banking and commercial services brings a practical focus that’s been evident in how the company operates day to day. Under his leadership, Fulton has prioritized stability, consistency, and long-term value creation rather than chasing short-term gains.
The executive team shares that same approach. The CFO and other senior leaders are focused on maintaining cost discipline, preserving asset quality, and keeping the bank’s capital position strong. Their measured tone and commitment to steady execution have helped Fulton navigate rising interest rates, competitive pressure, and integration efforts with minimal disruption. This isn’t a team trying to reinvent the wheel—they’re sticking to what works and refining it over time. For investors who appreciate reliability and income stability, that leadership style goes a long way.
Valuation and Stock Performance
Fulton Financial’s stock has traded between $14.33 and $22.49 over the past year. As of now, it sits closer to the lower end of that range, around $17. For investors focused on dividends and value, that’s not necessarily a negative. The current price offers a stronger yield and could present an opportunity if the stock regains upward momentum over time.
From a valuation perspective, Fulton looks reasonable. The trailing price-to-earnings ratio is 10.17, and the forward P/E is about the same at 10.15. These figures suggest the market isn’t placing a high-growth premium on the stock, but it’s also not overvaluing it. Price-to-book is just under 1, at 0.96, indicating shares are trading below the company’s book value. For banks with strong fundamentals, that can point to a margin of safety.
Dividend yield currently stands at 4.16%, slightly above its five-year average of 3.92%. That higher yield comes more from share price weakness than a major change in the dividend itself, but it enhances the total return profile for investors entering at current levels. The stock also has a beta of 0.78, which means it tends to be less volatile than the broader market. That makes it a more stable choice for income-focused investors looking for smoother performance.
Overall, Fulton hasn’t delivered breakout returns, but it has offered consistent income. That’s a trade-off many dividend investors are willing to accept, especially when paired with the bank’s low leverage and reliable cash flow.
Risks and Considerations
Like any financial stock, Fulton Financial faces a range of risks. One of the primary concerns is interest rate sensitivity. Even though the bank has done a good job managing through recent rate shifts, changes in the yield curve can affect loan demand, net interest income, and overall profitability. While the margin has held up recently, a flatter or inverted curve in the future could put pressure on those results.
Credit quality is always something to watch with a regional bank. At the moment, Fulton’s loan book looks healthy, with non-performing assets down and charge-offs at manageable levels. But if the broader economy turns or unemployment rises, defaults could tick higher. While the bank has built a solid reserve cushion, credit issues tend to be cyclical and can change quickly.
Regulatory scrutiny is another factor. Regional banks have come under greater oversight in the wake of recent turmoil in the sector. Fulton has remained on solid ground, but any new rules or capital requirements could increase costs or limit flexibility. Additionally, the bank will need to keep investing in technology and customer experience to remain competitive against larger national players and newer fintech firms.
There’s also the reality that the dividend, while stable now, is tied to earnings. If profit margins shrink significantly, management could have to reassess the payout. Right now, the dividend is well covered, but that’s a variable worth monitoring as economic conditions evolve.
Final Thoughts
Fulton Financial doesn’t aim to be the fastest-growing bank in the sector, and that’s part of its appeal. It delivers dependable income, managed risk, and a leadership team that knows how to navigate through both growth periods and slowdowns. The first quarter of 2025 showed that Fulton is operating from a position of strength—deposit growth, improving efficiency, and solid net income all point to a business that’s on stable footing.
For dividend investors, the consistency is hard to ignore. The payout is sustainable, backed by reliable operating and free cash flow, and the bank continues to maintain a solid balance sheet. With a conservative capital ratio and limited debt risk, Fulton has the foundation to keep rewarding shareholders, even if economic headwinds start to build.
At its current price, the stock offers a respectable yield and trades below book value, which is often a signal of value in the banking space. Analysts are projecting modest upside, which fits the narrative of a company focused on measured progress rather than big swings. Risks remain, but they appear manageable under the current structure and leadership approach.
For portfolios focused on income and stability, Fulton Financial brings a mix of tradition, discipline, and quiet performance that fits well. It may not grab headlines, but it keeps delivering—and that’s exactly what many long-term investors are looking for.