Atlantic Union Bankshares Boosts Dividends Amid Regional Growth and Financial Strength

Atlantic Union Bankshares Corporation (AUB) has reaffirmed its commitment to shareholder returns with an increased quarterly dividend on its common stock and a steady payout on its preferred shares, signaling confidence in its financial stability amid a competitive regional banking landscape. The latest dividend announcements, detailed in a January 31 press release, highlight a strategic balance between rewarding investors and maintaining the community-focused operations that have defined the company for decades.

The common stock dividend rose to $0.34 per share, a $0.02 increase from the first quarter of 2024, marking a 6% year-over-year growth. This brings the annualized dividend to $1.36 per share, with a current yield of 3.6%—a compelling figure for income-focused investors. The dividend will be paid on February 28 to shareholders of record as of February 14. Meanwhile, the 6.875% Perpetual Non-Cumulative Preferred Stock, Series A, will distribute $171.88 per share (or $0.43 per depositary share), consistent with prior quarters, with payment due March 3.

AUB’s Financial Foundation

The dividend hikes align with AUB’s robust financial position. As of December 31, 2024, its subsidiary, Atlantic Union Bank, operated 129 branches across Virginia, Maryland, and North Carolina, supported by non-bank affiliates such as equipment financing and insurance subsidiaries. This diversified structure has insulated the company from regional economic volatility, enabling steady earnings growth. The press release emphasized a “community-first” ethos, which has likely bolstered customer loyalty and deposit stability—critical advantages in a sector where customer retention is paramount.

Dividend Strategy and Market Context

The common stock dividend increase reflects management’s confidence in AUB’s capital position. A 3.6% yield stands out in a low-interest-rate environment, offering investors a reliable income stream. However, the preferred stock dividend, though unchanged, underscores the priority placed on common shareholders—a positive signal for equity investors.

While regional banks face headwinds from rising interest rates and evolving digital competition, AUB’s localized focus appears to be a strength. Its stock has outperformed broader banking indices in the past year, buoyed by consistent earnings and conservative risk management. The dividend growth further distinguishes it from peers that have held dividends flat or reduced payouts during periods of uncertainty.

Conclusion: A Steady Hand in Volatile Markets

Atlantic Union Bankshares’ dividend actions reflect a deliberate strategy to reward shareholders without compromising its financial resilience. With a 3.6% yield and a dividend growth rate ahead of inflation, the company offers income investors a stable play in the regional banking sector. Its branch network and diversified services—backed by a solid capital base—position it to weather economic cycles, making it a prudent choice for long-term portfolios.

The 6% increase in common dividends since 2024 and the consistent preferred payouts also suggest management’s confidence in future earnings. As regional banks continue to navigate macroeconomic challenges, AUB’s blend of community engagement and disciplined capital allocation may prove a winning formula, making it a standout name in an increasingly competitive space.