Should OFG Bancorp’s (OFG) Higher Dividend and New Buyback Require Action From Investors?

Simply Wall St

Wed, February 11, 2026 at 12:15 PM GMT+9 3 min read

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OFG

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In late January 2026, OFG Bancorp announced a 17% increase in its regular quarterly dividend to US$0.35 per share and authorized a share repurchase program of up to US$200 million as part of its capital actions for the year.

Together, the larger dividend and new buyback signal management’s confidence in OFG Bancorp’s balance sheet and its willingness to return more cash directly to shareholders.

Next, we’ll examine how OFG Bancorp’s larger dividend commitment shapes its investment narrative for investors assessing the bank’s capital priorities.

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What Is OFG Bancorp’s Investment Narrative?

To own OFG Bancorp, you need to be comfortable with a regional bank that currently looks inexpensive on earnings, but where consensus still points to pressured profitability ahead and rising credit costs. The 17% dividend hike to US$0.35 and the new US$200 million buyback reinforce that management sees the balance sheet and capital position as strong enough to support higher cash returns, which could be a short term support if sentiment around banks stays fragile. At the same time, recent net charge off figures have been moving higher and earnings growth has already slowed versus the last five years, so capital being returned is not without trade offs. The key question is whether investors see this capital plan as compensation for, or a precursor to, a tougher earnings path.

However, rising credit costs and insider selling are warning signs investors should be aware of. OFG Bancorp’s shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

OFG 1-Year Stock Price Chart

Two Simply Wall St Community fair value views range from about US$44 to over US$100, showing just how far apart private investors can be. You can weigh those against the higher dividend, buyback and rising credit losses to judge how today’s price reflects OFG’s next chapter.

Explore 2 other fair value estimates on OFG Bancorp - why the stock might be worth just $44.40!

Build Your Own OFG Bancorp Narrative

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

A great starting point for your OFG Bancorp research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Our free OFG Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate OFG Bancorp'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._

Companies discussed in this article include OFG.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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