The liquidity needs of the non-banking subsidiaries are minimalsince most of them are funded internally from operating cashflows or from intercompany borrowings from their holdingcompanies, BPPR or PB.DividendsDuring the year ended December 31, 2018, the Corporationdeclared quarterly dividends on its outstanding common stockof $0.25 per share, for a total of $101.3 million. The dividendsfor the Corporation’s Series A and Series B preferred stockamountedto$3.7million.TheBHC’sreceiveddividendsamounting to $446 million from BPPR, $8 million in dividendsfrom its non-banking subsidiaries, $1 million in dividends fromEVERTEC’s parent company, $6 million from an investment inanequityinvesteeand$13millionindividendfromits40POPULAR, INC. 2018 ANNUAL REPORT
investment in BHD Leon. A portion of these dividends was usedby Popular, Inc. for the payments of the cash dividends on itsoutstanding common stock, the $125 million accelerated stockrepurchase, to partially fund the redemption of $450 million,7% senior notes and the redemption of $53 million in trustpreferred securities.OnJanuary23,2019,theCorporationannouncedanincrease in its quarterly common stock dividend from $0.25 pershare to $0.30 per share, beginning in the second quarter of2019,subjecttoapprovalbyitsBoardofDirectors.OnFebruary15,2019,theCorporation’sBoardofDirectorsapproved a quarterly cash dividend of $0.30 per share on itsoutstandingcommonstock,payableonApril1,2019toshareholders of record at the close of business on March 8,2019.Other Funding Sources and CapitalThe debt securities portfolio provides an additional source ofliquidity, which may be realized through either securities salesor repurchase agreements. The Corporation’s debt securitiesportfolioconsistsprimarilyofliquidU.S.governmentinvestmentsecurities,sponsoredU.S.agencysecurities,governmentsponsoredmortgage-backedsecurities,andcollateralized mortgage obligations that can be used to raisefunds in the repo markets. The availability of the repurchaseagreement would be subject to having sufficient unpledgedcollateralavailableatthetimethetransactionsaretobeconsummated, in addition to overall liquidity and risk appetiteof the various counterparties. The Corporation’s unpledgeddebt securities, amounted to $4.3 billion at December 31, 2018and $3.2 billion at December 31, 2017. A substantial portion ofthese debt securities could be used to raise financing quickly inthe U.S. money markets or from secured lending sources.Additionalliquiditymaybeprovidedthroughloanmaturities, prepayments and sales. The loan portfolio can alsobe used to obtain funding in the capital markets. In particular,mortgageloansandsometypesofconsumerloans,havesecondary markets which the Corporation could use.