Time To Consider PNC On Dividend, Buyback Announcement? (PNC)

PNC Financial PNC announced this morning that it would raise its quarterly dividend by 250%, going to 35 cents per share. The dividend will be payable on May 5, 2011, and is payable to shareholders as of the close of April 18, 2011. In addition to the dividend hike, the Pittsburgh-based company announced it would begin buying back stock under its 25 million share buyback program, and expects to buy back as much as $500 million in stock this year. "Our board of directors views this dividend increase and share repurchase as key components of PNC's effort to enhance shareholder return," said James E. Rohr, chairman and chief executive officer of PNC. "The successful execution of PNC's business model, combined with disciplined capital management, has strengthened PNC's Tier 1 capital ratio to a record level. As the overall economy improves, we see opportunities to drive ever greater value for our shareholders." If PNC is that confident in its business and operations to raise its dividend by 250%, then perhaps now is a good time to initiate a position in the name, or add to it. Doing so before the stock goes ex-dividend would be the wisest choice.