Bread Financial Holdings, Inc. (NYSE:BFH) to Issue $0.23 Quarterly Dividend

Key Points

• Bread Financial will pay a quarterly dividend of $0.23 per share (ex-/record date: May 29; payable June 15), implying an annualized yield of about 1.0%.
• The company beat estimates this quarter with $4.18 EPS vs. $2.99 expected and revenue of $1.02 billion vs. $992 million consensus, with a net margin of 11.02% and ROE of 17.92%.
• Bread Financial’s board approved a $600 million share buyback (up to ~19% of shares); the current payout ratio is low (~10%), suggesting the dividend and buybacks are well supported by earnings.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) announced a quarterly dividend on Thursday, April 23rd. Stockholders of record on Friday, May 29th will be given a dividend of 0.23 per share on Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, May 29th.

Bread Financial has decreased its dividend by an average of 0.1%annually over the last three years. Bread Financial has a payout ratio of 10.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Bread Financial to earn $11.19 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 8.2%.

Bread Financial Trading Down 0.4%

Shares of NYSE:BFH traded down $0.34 during trading on Thursday, reaching $92.10. The stock had a trading volume of 911,055 shares, compared to its average volume of 817,201. Bread Financial has a 52 week low of $46.04 and a 52 week high of $99.13. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.17 and a current ratio of 1.17. The firm's fifty day moving average is $75.93 and its 200 day moving average is $71.36. The stock has a market cap of $3.81 billion, a price-to-earnings ratio of 8.50, a P/E/G ratio of 1.37 and a beta of 1.11.

Bread Financial (NYSE:BFH - Get Free Report) last announced its earnings results on Thursday, April 23rd. The company reported $4.18 earnings per share for the quarter, topping analysts' consensus estimates of $2.99 by $1.19. The business had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $992.05 million. Bread Financial had a net margin of 11.02% and a return on equity of 17.92%. Bread Financial's quarterly revenue was up 4.9% on a year-over-year basis. During the same quarter last year, the firm earned $2.86 earnings per share. As a group, equities analysts forecast that Bread Financial will post 9.62 EPS for the current fiscal year.

Bread Financial announced that its Board of Directors has approved a share buyback plan on Thursday, February 26th that permits the company to buyback $600.00 million in outstanding shares. This buyback authorization permits the company to buy up to 19% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

About Bread Financial

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.

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