Bread Financial Holdings, Inc. (NYSE:BFH) Announces Dividend Increase - $0.23 Per Share

Key Points

• Bread Financial Holdings, Inc. (NYSE:BFH) announced a quarterly dividend increase to $0.23 per share, marking a 9.5% increase from the previous dividend of $0.21.
• The company's payout ratio is at 9.3%, indicating that the dividend is well-covered by earnings, with analysts projecting EPS of $8.87 for the next year.
• Bread Financial reported a quarterly earnings per share of $4.02, significantly beating expectations, although revenue declined by 1.2% compared to the same quarter last year.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) announced a quarterly dividend on Thursday, October 23rd. Shareholders of record on Friday, November 7th will be given a dividend of 0.23 per share on Friday, December 12th. This represents a c) annualized dividend and a yield of 1.4%. The ex-dividend date is Friday, November 7th. This is a 9.5% increase from Bread Financial's previous quarterly dividend of $0.21.

Bread Financial has a payout ratio of 9.3% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Bread Financial to earn $8.87 per share next year, which means the company should continue to be able to cover its $0.84 annual dividend with an expected future payout ratio of 9.5%.

Bread Financial Price Performance

NYSE:BFH opened at $65.29 on Friday. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 0.36. The stock's 50 day moving average price is $61.05 and its two-hundred day moving average price is $56.49. The firm has a market capitalization of $3.04 billion, a price-to-earnings ratio of 11.05, a P/E/G ratio of 0.55 and a beta of 1.41. Bread Financial has a 12-month low of $38.21 and a 12-month high of $68.01.

Bread Financial (NYSE:BFH - Get Free Report) last released its quarterly earnings data on Thursday, October 23rd. The company reported $4.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.11 by $1.91. The firm had revenue of $971.00 million for the quarter, compared to analyst estimates of $974.30 million. Bread Financial had a return on equity of 13.10% and a net margin of 6.05%.The business's revenue for the quarter was down 1.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.83 earnings per share. Bread Financial has set its FY 2025 guidance at EPS. On average, analysts anticipate that Bread Financial will post 6.45 earnings per share for the current year.

Bread Financial declared that its Board of Directors has authorized a share buyback program on Wednesday, August 27th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

About Bread Financial

Bread Financial Holdings, Inc provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit.

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