Webster FinancialWBS +0.11%77 Dividend Payout Ratio is 0.26 as of Mar. 2026, which is 19% below its 10-year median of 0.32. GuruFocus rates WBS with a GF Score™ of 77/100 and a GF Value™ of $58.54 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,172 Banks companies, Webster Financial ranks better than 65.1% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Webster Financial's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.26.
The historical rank and industry rank for Webster Financial's Dividend Payout Ratio or its related term are showing as below:
WBS'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.26 Med: 0.32 Max: 0.59
Current: 0.26
During the past 13 years, the highest Dividend Payout Ratio of Webster Financial was 0.59. The lowest was 0.26. And the median was 0.32.
WBS's Dividend Payout Ratio is ranked better than 65.1% of 1172
companies
in the Banks industry
Industry Median: 0.32
vs WBS: 0.26
During the past 10 years, the average Dividends Per Share Growth Rate was 6.30% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Webster Financial was 139.60% per year. The lowest was -67.50% per year. And the median was 10.55% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Webster Financial (NYSE:WBS) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Webster Financial Dividend Payout Ratio Related Terms
Webster Financial Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Webster Financial's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WBS vs FHN, UMBF, WTFC: Dividend Payout Ratio Comparison
For the Banks - Regional subindustry, Webster Financial's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Webster Financial Dividend Payout Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Webster Financial's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Webster Financial's Dividend Payout Ratio falls into.
Webster Financial Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Webster Financial's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Webster Financial (WBS) has a Dividend Payout Ratio of 0.26 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Webster Financial and its competitors. This is 19% below median its historical median of 0.32. Over the past decade, Webster Financial's Dividend Payout Ratio has ranged from 0.26 to 0.59. According to the industry distribution chart, Webster Financial ranks #409 out of 1172 companies in the Banks industry, placing it in the top 34.9%.
Is Webster Financial's Dividend Payout Ratio too high?
Webster Financial's current Dividend Payout Ratio of 0.26 is 19% below median its 10-year median of 0.32. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 0.59. The Banks industry median Dividend Payout Ratio is 0.32. Webster Financial's value of 0.26 is 18.8% below this industry median. Based on the distribution chart, Webster Financial ranks #409 out of 1172 companies in the Banks industry, which is above the industry midpoint. Overall, Webster Financial has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Webster Financial's Dividend Payout Ratio compare to FHN and UMBF?
According to the Banks industry distribution chart, Webster Financial ranks #409 out of 1172 companies for Dividend Payout Ratio. This puts Webster Financial in the upper half of its industry. The industry median Dividend Payout Ratio is 0.32. Webster Financial's value of 0.26 is 18.8% below this benchmark. Historically, Webster Financial's own Dividend Payout Ratio has ranged from 0.26 to 0.59 over the past decade. While the company's 10-year median is 0.32 vs. the industry median of 0.32, Webster Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Banks company?
The median Dividend Payout Ratio among Banks companies is 0.32, based on 1,172 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Webster Financial's current Dividend Payout Ratio of 0.26 is 18.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Webster Financial and its competitors. For the Banks industry, the median Dividend Payout Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Webster Financial's current Dividend Payout Ratio is 0.26, which is 19% below median its own 10-year median of 0.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Webster Financial stock overvalued right now?
Based on GuruFocus' analysis, Webster Financial (WBS) is currently considered Modestly Overvalued. The stock's GF Value™ is $58.54, compared to a current price of $75.60 — trading 29.1% above its estimated fair value. The current Dividend Payout Ratio is 0.26, which is 19% below median its 10-year median of 0.32 and 18.8% below the Banks industry median of 0.32. Webster Financial's overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Webster Financial (WBS), the current Dividend Payout Ratio is 0.26 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Webster Financial (WBS) Overvalued in 2026?
Based on GuruFocus' analysis, Webster Financial stock appears to be overvalued.
The current stock price of $75.60 is trading 29.1% above its estimated GF Value™ of $58.54.
GuruFocus considers Webster Financial to be Modestly Overvalued.
Key valuation signals for WBS:
Dividend Payout Ratio: 0.26 (19% below median its 10-year median of 0.32)
GF Value™: $58.54 vs. price of $75.60 (29.1% above fair value)
Industry Position: 18.8% below the Banks median (#409 of 1172)
No single metric tells the full story. See the WBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Webster Financial Corp is a full-service provider of financial services, offering commercial and consumer banking, mortgages, and investment advisory along with trust and wealth management services in Connecticut, New York, Rhode Island, Massachusetts, and Pennsylvania. The company's segment includes Commercial Banking, HSA Bank, and Consumer Banking. It generates maximum revenue from the Commercial Banking segment.
77GF Score
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