• Earlier this week, Popular, Inc. announced an increase in its quarterly dividend from US$0.70 to US$0.75 per share, starting with the fourth quarter of 2025, alongside a US$500 million expansion of its share buyback plan, raising the total buyback authorization to US$1 billion contingent upon board approval.
• This dual step signals both strong capital generation and management’s intent to return more value to shareholders through higher dividends and additional share repurchases.
• We'll explore how the expanded US$1 billion buyback authorization could affect Popular’s investment outlook and shareholder value story.

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Popular Investment Narrative Recap

To own shares of Popular, Inc., you ultimately need to believe in its ability to generate consistent capital, navigate economic cycles in Puerto Rico and the U.S., and manage leadership transitions smoothly. The recently announced higher dividend and expanded buyback program reinforce Popular’s commitment to capital returns, but they do not materially change the most critical short-term catalyst, leadership transition, or the main risk, exposure to macroeconomic volatility and local challenges impacting growth.

Among the most relevant updates, the recent appointment of Javier D. Ferrer as CEO and director underscores that leadership change is moving forward as planned. Continuity and experience in management could help frame investor sentiment at a time when stable execution is key, especially as the company implements its enhanced capital return initiatives.

However, investors should keep in mind that, despite the recent focus on shareholder returns, the effects of local economic disruptions in Puerto Rico remain an important risk that could affect...

Read the full narrative on Popular (it's free!)

Popular's outlook anticipates $3.6 billion in revenue and $842.5 million in earnings by 2028. This projection is based on an annual revenue growth rate of 9.7% and represents a $155.5 million increase in earnings from the current $687.0 million.

Uncover how Popular's forecasts yield a $114.43 fair value, in line with its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members for Popular, Inc. range from US$114.43 to US$243.49. As you compare these differing views, remember that ongoing leadership changes may significantly influence how investors weigh both risk and possible future performance.

Explore 3 other fair value estimates on Popular - why the stock might be worth over 2x more than the current price!

Build Your Own Popular Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Popular research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Popular research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Popular's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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