OneMain Holdings, Inc. (NYSE:OMF) Announces Quarterly Dividend of $1.05

Key Points

• OneMain declared a quarterly dividend of $1.05 per share, payable November 13 to shareholders of record November 9. That equates to $4.20 annually and a 7.5% yield.
• The dividend appears covered by earnings: the payout ratio is 52.4%, and analysts forecast next-year EPS of $8.32 versus the $4.20 annual dividend.
• OneMain reported quarterly EPS of $1.51, below the $1.56 consensus, while revenue of $1.70 billion exceeded expectations. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $66.82.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) announced a quarterly dividend on Friday, October 30th. Stockholders of record on Monday, November 9th will be given a dividend of $1.05 per share by the financial services provider on Friday, November 13th. This represents a $4.20 annualized dividend and a dividend yield of 7.5%. The ex-dividend date of this dividend is Monday, November 9th.

OneMain has decreased its dividend by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 5 years. OneMain has a dividend payout ratio of 52.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect OneMain to earn $8.32 per share next year, which means the company should continue to be able to cover its $4.20 annual dividend with an expected future payout ratio of 50.5%.

OneMain Stock Performance

OneMain stock opened at $56.12 on Friday. The firm has a market cap of $6.42 billion, a price-to-earnings ratio of 9.01, a PEG ratio of 0.66 and a beta of 1.30. The firm has a 50 day moving average price of $58.39 and a two-hundred day moving average price of $58.25. OneMain has a 52-week low of $45.78 and a 52-week high of $71.93.

OneMain (NYSE:OMF - Get Free Report) last released its quarterly earnings data on Friday, October 30th. The financial services provider reported $1.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.56 by ($0.05). The firm had revenue of $1.70 billion during the quarter, compared to analysts' expectations of $1.34 billion. OneMain had a net margin of 13.43% and a return on equity of 21.97%. During the same quarter in the previous year, the firm posted $1.90 EPS. As a group, equities research analysts predict that OneMain will post 6.59 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. upped their target price on OneMain from $52.00 to $56.00 and gave the company an "underweight" rating in a research report on Monday, November 2nd. Bank of America cut their target price on OneMain from $67.00 to $66.00 and set a "buy" rating for the company in a research report on Monday. Evercore set a $60.00 target price on shares of OneMain in a research report on Thursday, October 1st. Citigroup reissued a "market outperform" rating on shares of OneMain in a report on Thursday, July 30th. Finally, Royal Bank Of Canada reduced their price objective on shares of OneMain from $71.00 to $70.00 and set an "outperform" rating for the company in a research note on Monday, November 2nd. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $66.82.

OneMain Company Profile

OneMain Holdings, Inc, operating under the OneMain Financial brand, is a consumer finance company that provides personal lending and related financial services primarily to non-prime consumers in the United States. The company serves customers through a combination of branch locations, online and mobile channels, and centralized customer service operations.

OneMain's principal products include secured and unsecured personal loans, which customers may use for debt consolidation, home improvements, major purchases, and other personal expenses.

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