Popular (NASDAQ:BPOP) Shareholders Earn 12% CAGR Over Last Five Years

Generado por agente de IAWesley Park
lunes, 13 de enero de 2025, 7:02 am ET2 min de lectura
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Popular, Inc. (NASDAQ:BPOP), a leading regional bank based in Puerto Rico, has delivered impressive returns for its shareholders over the past five years. With a compound annual growth rate (CAGR) of 12%, investors in Popular have seen their investments grow at a steady pace. This article explores the factors contributing to Popular's strong performance and provides insights into the company's future prospects.



Consistent Dividend Growth

One of the primary drivers of Popular's strong performance has been its consistent dividend growth. The company has increased its dividend for 10 consecutive years, with a 5-year CAGR of 18.42%. This dividend growth has provided a steady stream of income for shareholders and has contributed to the overall return on investment. Popular's current dividend yield of 3.03% is higher than the sector median of 2.44%, making the stock an attractive option for income-oriented investors.



Stock Price Appreciation

In addition to dividend growth, Popular's stock price has also appreciated over the past five years. The stock price has increased from around $77.37 in January 2020 to $92.55 in January 2025, a 19.5% increase. This appreciation reflects the company's strong financial performance and the overall growth of the banking sector.

Earnings Growth

Popular's earnings per share (EPS) have also grown over the past five years. The EPS for the past 12 months was $7.36, compared to $5.65 in 2020, a 30.4% increase. This earnings growth is a testament to the company's strong financial performance and its ability to generate value for shareholders.

Market Capitalization Growth

Popular's market capitalization has grown from $5.2 billion in 2020 to $6.6 billion in 2025, a 26.9% increase. This growth in market capitalization reflects the overall appreciation of the company's value and its strong financial performance.



Expansion and Diversification

Popular has expanded its operations and diversified its revenue streams, providing various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. This expansion and diversification have contributed to the company's growth and stability, as the company has been able to tap into new customer bases and increase its revenue streams.

Future Prospects

Looking ahead, Popular is well-positioned to continue its strong performance. The company's consistent dividend growth, stock price appreciation, earnings growth, and market capitalization growth are all positive indicators of its future prospects. Additionally, Popular's expansion into new markets and its diversified revenue streams provide further opportunities for growth and success.



In conclusion, Popular, Inc. (NASDAQ:BPOP) has delivered impressive returns for its shareholders over the past five years, with a CAGR of 12%. The company's consistent dividend growth, stock price appreciation, earnings growth, market capitalization growth, and expansion into new markets have all contributed to its strong performance. As Popular continues to grow and expand, it is well-positioned to continue delivering value for its shareholders.

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