TFS FinancialNASDAQ: TFSL

TFS Financial Corporation has a unique ownership structure with majority owners not receiving dividends, making the high payout ratio misleading. Rising interest rates had mixed effects on TFSL, increasing interest income but reducing demand for new loans and refinancing deals. TFSL offers a 9% dividend yield, fully supported by income, but has not raised dividends in 4 years, leading to mixed investor reactions.

CLEVELAND--(BUSINESS WIRE)--TFS Financial Corporation (NASDAQ: TFSL) (the “Company”), the holding company for Third Federal Savings and Loan Association of Cleveland (the “Association”), today announced that the Board of Directors declared a quarterly cash dividend of $0.2825 per share, payable on June 25, 2024, to stockholders of record on June 11, 2024. Third Federal Savings and Loan Association of Cleveland, MHC (the “MHC”), the mutual holding company of the Company and owner of 227,119,132.

CLEVELAND--(BUSINESS WIRE)--TFS Financial Corporation (Nasdaq: TFSL), (the “Company”), the holding company for Third Federal Savings and Loan Association of Cleveland, announced that Third Federal Savings and Loan Association of Cleveland, MHC, (the “MHC”), the mutual holding company that owns 80.9% of the Company's outstanding common stock, will hold a special meeting of its members. The meeting will include a vote on a proposal to waive the MHC's right to receive quarterly dividends totaling.

TFS Financial Corporation is a retail bank with a unique stock ownership structure, paying dividends only to minority shareholders. Due to the limited number of shares eligible for dividends, TFSL can support a dividend yield of 8%. The company's earnings and book value differ depending on whether all shares or minority shares are considered, impacting perceptions of dividend sustainability and stock valuation.

TFS Financial Corporation has sustained solid performance despite macroeconomic headwinds, with operational efficiency and a resilient portfolio contributing to increased profit margins and high dividend payout. TFSL reported a net income of $17.6 million, up 2.65% compared to $17.1 million in Q3FY22. TFSL's dividend payout totaled $1.13 per share annually resulting in a dividend yield of 7.66%.