Bread Financial Holdings, Inc. (NYSE:BFH) Announces Quarterly Dividend of $0.25

Key Points

• Bread Financial increased its quarterly dividend 8.7% to $0.25 per share, payable December 15 to shareholders of record November 30. The annualized dividend is $1.00 per share, representing a 1.0% yield.
• The company reported quarterly EPS of $3.84, beating analysts’ $3.34 estimate, while revenue rose 4.7% year over year to $1.02 billion. Its dividend remains well covered, with a 10.1% payout ratio.
• Analyst sentiment is mixed but leans positive: eight analysts rate BFH a Buy, seven Hold, and one Sell, with an average price target of $112.29 versus the reported share price of $102.61.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) declared a quarterly dividend on Thursday, October 22nd. Stockholders of record on Monday, November 30th will be given a dividend of $0.25 per share on Tuesday, December 15th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, November 30th. This is a 8.7% increase from Bread Financial's previous quarterly dividend of $0.23.

Bread Financial has decreased its dividend payment by an average of 0.1% per year 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 $13.19 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 7.0%.

Bread Financial Stock Performance

Shares of NYSE:BFH traded down $6.02 during trading on Thursday, reaching $102.61. 1,019,277 shares of the company's stock traded hands, compared to its average volume of 694,317. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.17 and a quick ratio of 1.17. Bread Financial has a 12 month low of $59.26 and a 12 month high of $114.53. The company has a 50 day moving average of $104.81 and a 200-day moving average of $98.46. The stock has a market capitalization of $3.94 billion, a P/E ratio of 8.00, a price-to-earnings-growth ratio of 0.83 and a beta of 1.15.

Bread Financial (NYSE:BFH - Get Free Report) last issued its earnings results on Thursday, October 22nd. The company reported $3.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.34 by $0.50. Bread Financial had a net margin of 11.95% and a return on equity of 18.42%. The firm had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $1.01 billion. During the same quarter last year, the company posted $4.02 earnings per share. Bread Financial's revenue was up 4.7% on a year-over-year basis. On average, equities analysts expect that Bread Financial will post 12.10 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on BFH. Seaport Research Partners restated a "buy" rating and set a $121.00 price objective on shares of Bread Financial in a research report on Wednesday, October 7th. Wells Fargo & Company started coverage on Bread Financial in a research note on Friday, September 11th. They issued an "equal weight" rating and a $115.00 target price on the stock. UBS Group boosted their price target on shares of Bread Financial from $120.00 to $127.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Wolfe Research upgraded shares of Bread Financial from a "peer perform" rating to an "outperform" rating and set a $130.00 price target for the company in a research report on Tuesday, August 25th. Finally, Zacks Research cut shares of Bread Financial from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 6th. Eight equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $112.29.

About Bread Financial

Bread Financial Holdings, Inc NYSE: BFH is a financial services company that provides payment, lending and savings solutions to consumers and businesses. Its offerings include private-label and co-branded credit cards, installment lending, buy now, pay later services and deposit products.

The company operates through its Bread platform, which supports merchants with financing options, payment processing and customer loyalty solutions. Its consumer products have included Bread Cashback credit cards, Bread Pay installment payment services and Bread Savings deposit accounts.

Bread Financial primarily serves consumers and merchants in the United States, with solutions designed for retail, travel, home improvement and other industries.

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