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US Bancorp cuts quarterly dividend by 88 percent


U.S. Bancorp shareholders can expect a smaller dividend check to arrive this quarter.

The company said today that it’s cutting its dividend on common stock by 88 percent, to 5 cents per share.

“The decision to reduce our quarterly dividend was thoughtfully considered and very difficult, given the importance of the dividend to our shareholders,” CEO Richard Davis said in the company’s statement.

“It was, however, the right decision, as our industry continues to confront uncertainty in the financial markets and a weakening economy. It is important for our shareholders to know that we are not reducing the dividend and preserving capital from a position of weakness, but from a position of strength and a desire to continue to invest in and expand our business.

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Davis said the bank continues to benefit from a “flight to quality,” and that the company is investing in the franchise and its employees.

(More: Star Tribune, Pioneer Press)