Dallas, Texas 12/11/2013 (FINANCIALSTRENDS) – U.S. Bancorp (NYSE:USB) gave two reasons for its investors to go home happy yesterday. The S&P 500 index tracked $72.22 billion market capped stock has announced that it’s long running dispute with Federal Home Loan Mortgage Corporation (FMCC) which traces back to soured business dealings between the two companies to early 2000. The second piece of good news which came out yesterday was the healthy dividend payout to its share holders which was announced by the board of U.S. Bancorp (NYSE:USB).
Finally Makes Up With Freddie Mac
Now the gory details of the happy tidings. U.S. Bancorp (NYSE:USB) has announced that it has finally concluded its dispute with Federal Home Loan Mortgage Corporation which was centred around the obligations of repurchase of warrants and loan bonds which were originally sold by USB to Freddie Mac in the run up to the banking sector meltdown down in 2008. The dispute stems back to such trades between the two companies way back to early 2000. In order to settle claims of wrong doing on its part U.S. Bancorp (NYSE:USB) has signed off to pay a cash payout of $53 million to Federal Home Loan Mortgage Corporation. The funds for these onetime payout will come out of the reserve funds which the banking major had already set aside for legal expenses as reported in its 3Q results.
Announces Quarterly Dividends
The second piece of good news was around the decision of board of directors of U.S. Bancorp (NYSE:USB) to pay out quarterly dividend of $0.23 per share which will get paid out on January 15. All shareholders who are on record as of December 31 will be eligible for the payout. Readers should note that with the latest quarterly payout, the banking stock has paid back to its share holders close to $0.92 dividend per share over the trailing 12 months. This translates to a dividend yield of 2.33 percent.