MINNEAPOLIS (AP) — U.S. Bancorp says its board of directors has declared a new quarterly dividend and approved a plan for the company to buy back up to 50 million of its shares.

The parent company of U.S. Bank on Friday declared a quarterly dividend of 12.5 cents, or 50 cents a share on an annualized basis. That’s an increase of more than double the prior dividend.

The dividend will be paid on April 15 to shareholders of record on March 31.

The move follows action by the Federal Reserve on Friday to clear the way for some major banks to boost their stock dividends.

Banks can increase dividends if they pass “stress tests” showing that they can weather another recession.

U.S. Bancorp’s share buyback program runs through year-end.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


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