MINNEAPOLIS--(BUSINESS WIRE)--Dec. 12, 2006--The board of
directors of U.S. Bancorp (NYSE:USB) has approved a 21 percent
increase in the dividend rate on U.S. Bancorp common stock to $1.60 on
an annualized basis, or $0.40 on a quarterly basis. The board declared
a quarterly common stock dividend of $0.40 per common share payable on
January 16, 2007, to shareholders of record at the close of business
on December 29, 2006.
U.S. Bancorp, through its predecessor companies, has increased its
annual common share dividend rate in each of the past 35 years and
will have paid a dividend for 144 consecutive years as of January 16,
2007. Prior to this announced increase, U.S. Bancorp's dividend on an
annualized basis was $1.32, or $0.33 on a quarterly basis.
Richard K. Davis, president and chief executive officer of U.S.
Bancorp noted, "We are very proud of U.S. Bancorp's long history of
paying a dividend, which provides our shareholders with an additional
reward for investing in our company. Increasing the dividend by 21
percent is an important part of our strategy to continue our
commitment to return at least 80 percent of our earnings to our
shareholders through dividends and a stock repurchase program. We
believe shifting the total payout to shareholders toward a higher mix
of dividends is a more effective means to transfer the company's
superior profitability directly to the shareholders. The decision to
move to a greater proportion of dividends in no way diminishes the
growth prospects of the company, since we will continue to retain 20
percent of earnings to support expected asset growth, capital
expenditures and cash acquisitions. A higher dividend payout such as
this is consistent with our strategy of low risk, dependable earnings
and financial discipline."
The board of directors has also declared a regular quarterly
dividend of $381.66 per share (equivalent to $.38166 per depositary
share) on U.S. Bancorp's Series B Non-Cumulative Perpetual Preferred
Stock, payable January 16, 2007, to stockholders of record at the
close of business on December 29, 2006.
U.S. Bancorp, with $217 billion in assets, is the 6th largest bank
holding company in the United States. The company operates 2,467
banking offices and 4,943 ATMs in 24 states, and provides a
comprehensive line of banking, brokerage, insurance, investment,
mortgage, trust and payment services products to consumers, businesses
and institutions. U.S. Bancorp is the parent company of U.S. Bank.
Visit U.S. Bancorp on the web at www.usbank.com.
CONTACT: U.S. Bancorp
Steve Dale (Media), 612-303-0784
Judy Murphy (Analysts), 612-303-0783
SOURCE: U.S. Bancorp