Regular and preferred dividends put WaFd in focus

WaFd (WAFD) is back on dividend investors’ radar after its board declared a regular cash dividend on common stock and a separate payout on its Series A preferred shares, including the WAFDP depositary shares.

The common dividend of $0.27 per share is scheduled for payment on September 4, 2026, to shareholders of record on August 21, 2026, which is also the ex dividend date for the stock.

For preferred holders, WaFd’s board approved a cash dividend of $12.1875 per share on its 4.875% Fixed Rate Series A Non Cumulative Perpetual Preferred Stock, or $0.30468750 per WAFDP depositary share.

The Series A preferred dividend is payable on October 15, 2026, to investors of record as of September 30, 2026. That record date sets a clear timeline for cash flows tied to this preferred security.

At a share price of $36.38, WaFd has given shareholders a year to date share price return of 13.23%. The 1 year total shareholder return of 18.37% and 3 year total shareholder return of 51.17% suggest momentum has been building over a longer horizon.

If these dividend announcements have you thinking more broadly about income and growth opportunities, it could be a good time to scan for banks and financials with resilient profiles through a 21 top founder-led companies

Bulls point to WaFd’s long dividend track record and recent share price gains. Bears highlight recent short term share price softness and questions about how much is already priced in. Which case fits the current valuation best?

Most Popular WaFd Narrative: 6.7% Undervalued

With WaFd trading at $36.38 against a narrative fair value of $39.00, the current share price sits slightly below what this widely followed thesis assumes.

The Build 2030 shift toward true commercial banking and small business relationships, including reorganized business, corporate and commercial real estate banking teams, positions WaFd to grow higher yielding C&I and CRE loans, supporting faster revenue and earnings growth.

Read the complete narrative. Read the complete narrative.

The core of this valuation hinges on measured revenue expansion, only modest margin compression and a future earnings multiple that stays below the wider US Banks peer group. Curious which specific growth and profitability assumptions have to line up for that $39 fair value to hold?

Result: Fair Value of $39 (UNDERVALUED)

However, WaFd’s narrative also faces risks, including pressure on net interest margin if funding costs do not ease, as well as any sustained weakening in credit quality.

Another View on WaFd’s valuation

While the WaFd narrative points to a fair value of $39.00, our DCF model points to a lower figure of $34.90. That implies the same $36.38 share price could be slightly above intrinsic value on this measure. Which set of assumptions appears more realistic to you?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out WaFd for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment on WaFd pulling in both bullish and cautious views, now is the moment to look through the numbers yourself and decide what truly matters most for your portfolio. To see what is driving optimism around the rewards on offer, take a closer look at the 4 key rewards.

Looking for more investment ideas beyond WaFd?

If WaFd has sharpened your focus on what you want from a stock, do not stop here. Use these ideas to pressure test and refine your watchlist.

• Target future compounders by scanning a curated list of quality stocks that trade below their estimated value through the 49 high quality undervalued stocks.
• Strengthen your income stream by hunting for companies that pair higher yields with resilience using the 12 dividend fortresses.
• Prioritise resilience by focusing on companies with lower overall risk profiles through the 77 resilient stocks with low risk scores.

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.