Capitol Federal Financial, Inc. (NASDAQ:CFFN) announced today that its Board of Directors has declared a cash true-up dividend of $0.29 per share on outstanding CFFN common stock for fiscal year 2016. This dividend will bring cash dividends attributed to fiscal year 2016 earnings to $0.63 per share, representing a $0.05 per share increase over cash dividends attributed to fiscal year 2015 earnings.
The fiscal year 2016 cash true-up dividend is the result of the Board of Directors’ commitment to distribute to stockholders 100% of the earnings of the Company for fiscal year 2016. The amount of the dividend was determined by taking the difference between total earnings for fiscal year 2016 of $83.5 million and total regular quarterly cash dividends paid during fiscal year 2016 of $45.2 million. The $38.3 million difference equates to a dividend of $0.29 per share. The dividend is payable on December 2, 2016 to stockholders of record as of the close of business on November 18, 2016.
For fiscal year 2017, it is the intent of the Board of Directors and management to continue with the payout of 100% of the Company’s earnings to its stockholders. The payout is expected to be in the form of regular quarterly cash dividends of $0.085 per share, totaling $0.34 for the year, and a cash true-up dividend equal to fiscal year 2017 earnings in excess of the amount paid as regular quarterly cash dividends during fiscal year 2017. It is anticipated that the fiscal year 2017 cash true-up dividend will be paid in December 2017. Dividend payments depend upon a number of factors including the Company’s financial condition and results of operations, regulatory capital requirements, regulatory limitations on the ability of Capitol Federal Savings Bank (the “Bank”) to make capital distributions to the Company, and the amount of cash at the holding company.
Capitol Federal Financial, Inc. is the holding company for the Bank, which operates 47 branch offices in Kansas and Missouri. News and other information about the Company can be found on the Bank’s website, http://www.capfed.com.