3/8/25
Fulton Financial Corporation (NASDAQ: FULT) is a regional bank with deep roots in community banking. Headquartered in Lancaster, Pennsylvania, the company operates a network of branches across the Mid-Atlantic, serving businesses and individuals with traditional banking services like mortgages, commercial lending, and wealth management.
Unlike the big Wall Street banks, Fulton focuses on relationship-driven banking, which has helped it maintain a stable financial position over the years. With a market cap of $3.35 billion and steady revenue growth, it’s an interesting stock for those who want dividend income from a financial company without the extreme volatility that sometimes comes with larger institutions.
The big question for investors: Is Fulton Financial a strong long-term dividend play? Let’s dive in.
Key Dividend Metrics
💰 Dividend Yield: 3.91%
📈 5-Year Average Yield: 3.94%
🔄 Dividend Growth: Increasing but at a measured pace
⚖️ Payout Ratio: 43.95%, which leaves room for reinvestment
📅 Ex-Dividend Date: December 31, 2024
💵 Next Dividend Payment: January 15, 2025
Dividend Overview
Fulton Financial has built a reputation for steady, reliable dividend payments. Right now, the stock yields 3.91%, which is right in line with its five-year average of 3.94%. That consistency is something income investors should appreciate—no wild swings in payouts, just a steady cash flow.
One of the most reassuring factors about FULT’s dividend is its payout ratio of 43.95%. This means the company is only distributing about 44% of its earnings as dividends, leaving plenty of room to cover the payment even if earnings take a temporary dip. Banks that keep their payout ratios below 50% are usually in a strong position to maintain and grow their dividends over time.
The next dividend will be paid on January 15, 2025, for investors who hold shares before the ex-dividend date on December 31, 2024.
Dividend Growth and Safety
When it comes to dividend safety, Fulton Financial looks like a solid bet. The company’s earnings per share (EPS) over the last 12 months came in at $1.57, which easily covers the dividend. Plus, with a return on equity (ROE) of 9.69% and a profit margin of 25.16%, the business is running efficiently, which bodes well for maintaining its dividend strategy.
Dividend growth, however, has been more measured. The company has been increasing its dividend over time, but not at a breakneck pace. This makes sense—regional banks tend to prioritize stability over aggressive hikes. While some investors might prefer a stock with more dividend growth potential, others will appreciate the predictability Fulton offers.
Another good sign is the company’s cash position. With $1.22 billion in total cash on the books, Fulton has a solid liquidity cushion. This gives it the flexibility to maintain its dividend even if economic conditions become more challenging.
Chart Analysis
Price Action and Trend
Fulton Financial (FULT) has been in a broad uptrend for most of the past year, with the stock climbing from below $15 to over $22 at its recent peak. However, after reaching those highs, the stock has been gradually pulling back, now sitting at $18.40.
One key observation is that the 50-day moving average (light blue line) has started sloping downward, signaling a potential shift in momentum. The stock is now trading below this short-term trend line, which could mean increased selling pressure. Meanwhile, the 200-day moving average (dark blue line) is still rising, showing that the longer-term trend remains intact.
Right now, FULT is testing a crucial level, sitting just above the 200-day moving average. If it fails to hold this support level, the stock could see further downside in the near term. However, if buyers step in here, it may stabilize and attempt another move higher.
Volume and Market Participation
Trading volume has been relatively stable, with no major spikes in recent sessions. That said, the recent downward movement hasn’t been accompanied by a sharp increase in selling volume, suggesting that this isn’t a panic-driven selloff. Instead, it looks like a controlled pullback, possibly driven by profit-taking after a strong rally.
Earlier in the year, there were some noticeable volume surges, particularly in May and November, which coincided with sharp upward moves in price. This suggests that institutional buyers were active during those periods. If another volume spike occurs near the current level, it could signal renewed buying interest.
Relative Strength Index (RSI)
The RSI indicator at the bottom of the chart shows that momentum has been weakening. After peaking above 70 late last year—indicating overbought conditions—the RSI has been steadily declining. It now sits closer to 40, which is approaching the oversold range.
An RSI reading near 30 is often considered a sign that selling pressure may be overdone, leading to a potential reversal. However, just because RSI is low doesn’t guarantee an immediate bounce. It’s more of a signal that the stock may be nearing a level where buyers could step in.
Key Levels to Watch
- Support at 200-Day Moving Average – This is the most immediate level to watch. A decisive break below this trend line could open the door for a larger decline.
- Resistance Around $20 – If the stock can stabilize and move higher, the first hurdle will be regaining the $20 level, which coincides with the 50-day moving average.
- RSI Nearing Oversold Levels – If RSI continues lower, watch for a bounce near 30, which could signal a short-term bottom.
The next few sessions will be important in determining whether FULT finds support or continues its decline. The volume profile and reaction at key moving averages will give further clues about investor sentiment.
Analyst Ratings
🟢 Stephens: On December 11, 2024, Stephens upgraded FULT from “Equal Weight” to “Overweight,” raising the price target from $24 to $25. The firm cited improving profitability metrics and strong regional banking performance as key reasons for the upgrade. Analysts also pointed to better-than-expected loan growth and a favorable interest rate environment supporting the company’s net interest income.
🟢 Janney: On April 29, 2024, Janney upgraded FULT to “Buy” from “Neutral,” setting a price target of $19.50. The upgrade was driven by improved credit quality, stronger-than-expected earnings, and an optimistic outlook on the bank’s ability to manage deposit costs. The firm also highlighted FULT’s conservative loan portfolio and disciplined risk management as reasons for the improved rating.
🔴 Stephens: On December 14, 2023, Stephens downgraded FULT to “Equal Weight” from “Overweight,” adjusting the price target to $16 from $14. The downgrade was attributed to concerns over potential margin compression as the bank faces increasing funding costs. Analysts also noted a slowdown in deposit growth, which could pressure earnings in upcoming quarters.
🔴 Raymond James: On April 7, 2021, Raymond James downgraded FULT to “Market Perform” from “Outperform.” This change reflected concerns about potential headwinds from regulatory challenges and a shifting interest rate environment. Analysts expressed caution about the bank’s ability to maintain its growth trajectory amid a competitive lending landscape.
📊 Consensus Rating: As of February 27, 2025, the consensus rating for FULT is “Hold,” based on evaluations from six analysts, with an average price target of $20.64. While some analysts see upside potential in the bank’s efficiency and growth, others remain cautious about macroeconomic risks and industry headwinds.
These mixed analyst opinions reflect varying perspectives on Fulton Financial’s performance and outlook. Investors should consider these insights alongside their own research when evaluating FULT as a potential investment.
Earnings Report Summary
Fulton Financial Corporation recently shared its latest earnings, giving investors a closer look at how the bank performed in the fourth quarter and throughout 2024. The numbers showed some solid growth, along with a few areas that need watching.
For the fourth quarter, the bank reported 66.1 million in net income available to common shareholders, which works out to 0.36 per share. That’s an increase of 5.4 million, or about 0.03 per share, compared to the previous quarter. For the full year, net income came in at 278.5 million, or 1.57 per share. While total earnings were up slightly from last year, earnings per share dipped by 0.07, largely due to the impact of share issuances.
Looking at operating income, which strips out one-time adjustments, the company pulled in 88.9 million in the fourth quarter, or 0.48 per share. That’s down slightly from the prior quarter. However, for the full year, operating net income grew to 328.1 million, or 1.85 per share, marking a 0.14 per share increase over last year.
One key metric for any bank is net interest income, which is what the company makes from lending after subtracting what it pays out on deposits and other liabilities. In the fourth quarter, net interest income dropped 4.4 million, totaling 253.7 million. The decrease was primarily due to lower short-term interest rates, which put some pressure on loan yields. There was a 15.4 million decline in loan interest income, but that was partially offset by a 6.8 million boost from investment securities and a reduction in interest expenses.
On the non-interest income side, which includes things like fees and services, the bank saw a healthy jump, climbing from 59.7 million to 65.9 million. This was helped by a 5 million gain related to acquisitions. Meanwhile, non-interest expenses fell to 216.6 million, down from 226.1 million in the prior quarter. A big reason for the lower expenses was a 10.9 million drop in salaries and benefits, plus lower costs tied to acquisitions and real estate.
Loan performance remains a mixed picture. The bank set aside 16.7 million for potential credit losses, keeping its loan loss reserves at 1.58 percent of total loans. Non-performing assets, which include loans that aren’t being repaid as expected, ticked up slightly to 222.7 million, or 0.69 percent of total assets.
Overall, Fulton wrapped up 2024 on solid footing, with steady earnings growth and careful cost management. While interest rate pressures remain a challenge, the bank is staying flexible and keeping an eye on credit quality.
Financial Health and Stability
A strong dividend is only as good as the company’s financial foundation. The good news is that Fulton looks healthy on multiple fronts.
- Revenue over the last year came in at $1.15 billion, representing solid 24.6% year-over-year growth. That’s impressive for a regional bank, especially in a higher interest rate environment where loan growth can slow down.
- Net income available to common shareholders sits at $278.5 million, with quarterly earnings growing 6.8% compared to last year.
- The company has a book value per share of $16.50, which is close to its current stock price, suggesting it’s fairly valued.
On the balance sheet, Fulton has $1.22 billion in cash and $2.19 billion in total debt. While debt levels aren’t low, that’s to be expected for a bank, as they rely on deposits and lending to generate income. The key is making sure those loans are well-managed, and so far, Fulton’s loan portfolio looks stable.
Valuation and Stock Performance
Fulton Financial’s stock is currently trading at $18.40, with a trailing price-to-earnings (P/E) ratio of 11.72 and a forward P/E of 10.15. That suggests the stock is reasonably priced relative to earnings, especially compared to many larger banks that trade at higher multiples.
A few other valuation metrics stand out:
- The price-to-book (P/B) ratio is 1.12, meaning the stock is trading only slightly above its book value. This suggests it’s not overpriced.
- The price-to-sales ratio is 2.77, which is in line with many other regional banks.
In terms of stock performance, Fulton has been trading between $13.87 and $22.49 over the last year. Right now, it’s sitting near the lower end of that range, which could mean there’s room for upside if market sentiment improves. However, the stock has been trading below its 50-day moving average of $19.98, indicating some short-term weakness.
Risks and Considerations
Like any stock, Fulton Financial isn’t without risks. Here are a few things to keep in mind:
- Interest Rate Sensitivity – As a bank, Fulton’s earnings are heavily tied to interest rates. If the Federal Reserve lowers rates significantly, it could squeeze the company’s net interest margin, which is a key driver of profitability.
- Regional Banking Exposure – Unlike the big national banks, Fulton is focused on the Mid-Atlantic region. If economic conditions in that area weaken, it could impact the company more than a bank with a more diversified footprint.
- Loan Quality – A major concern for any bank is credit quality. While Fulton’s loan portfolio appears stable, an increase in defaults or non-performing loans could hurt earnings.
- Stock Performance – The stock has been under some pressure, recently falling below key moving averages. While that doesn’t mean there’s anything wrong with the company, it’s something to watch if momentum continues downward.
Despite these risks, Fulton remains a steady name in regional banking. It’s not a high-growth stock, but for those focused on dividends, it offers reliability with relatively low volatility.
Final Thoughts
Fulton Financial is a solid regional bank that offers a stable dividend, reasonable valuation, and strong financial health. While it may not be the most exciting stock, it’s a good option for those looking for dependable income without excessive risk.
With a dividend yield of 3.91%, a payout ratio below 50%, and consistent revenue growth, it checks many of the right boxes for income-focused investors. The stock isn’t trading at a steep discount, but it also doesn’t look overvalued.
For those looking for a conservative dividend stock in the financial sector, Fulton Financial is worth considering. As always, it’s important to keep an eye on economic conditions and interest rate trends, as these factors will play a major role in how the stock performs in the coming years.