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    First BanCorp (FBP) Could Be 20% Undervalued On 25% Dividend Rise And $350 Million Buyback

    Simply Wall St·11/02/2026 23:42:21
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    First BanCorp (FBP) has just paired a 25% higher quarterly dividend with a new share repurchase program of up to US$350 million, moves that put shareholder payouts firmly in focus.

    First BanCorp’s stock tells a mixed short term story, with the 7 day share price return down 3.58% and the 90 day move lower by 9.62%, even though the year to date share price return is up 26.32% and the 1 year total shareholder return sits at 38.71%. This points to longer term momentum that contrasts with recent softness as investors weigh higher dividends, the US$350 million buyback and fresh earnings and credit data.

    Compare First BanCorp’s richer dividend and buyback with other income focused financials by scanning 4 dividend fortresses that pair yield with sturdier looking payout profiles.

    After a 25% dividend hike and a US$350 million buyback launch, First BanCorp is clearly rewarding holders. Do those payouts still offer an appealing entry price for new money now?

    Most Popular Narrative: 16% Undervalued

    The most followed valuation view estimates First BanCorp’s fair value at $31.57 using a 7.2% discount rate, compared with a last close of $26.40. This frames the richer dividend and new buyback within a broader story about capital strength and earnings power.

    High capital generation and very strong capital ratios, including CET1 around 17% and tangible common equity of roughly 10.1%, give First BanCorp capacity to continue sizeable share repurchases and an above market dividend while still growing tangible book value, which can support earnings per share and return metrics.

    See why 6 investors see First BanCorp as 16% undervalued.

    Result: Fair Value of $31.57 (UNDERVALUED)

    Still, the First BanCorp story can change quickly if Puerto Rico’s demographic drag bites harder or if Epstein related legal actions escalate and push costs higher.

    Find out about the key risks to this First BanCorp narrative.

    Next Steps

    If the First BanCorp story feels finely balanced between opportunity and concern, act while the details are fresh in mind. You can check the full mix of risks and upsides in 3 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond First BanCorp?

    If First BanCorp has sharpened your focus on quality and price, do not stop here. Broaden your watchlist with other clear, data backed opportunities.