TFS Financial Corporation (NASDAQ:TFSL) Increases Dividend to $0.32 Per Share

Key Points

• TFS Financial raised its quarterly dividend 12.4% to $0.3175 per share, payable September 23 to shareholders of record on September 9. The dividend implies an annualized payout of approximately $1.27 per share and a 7.1% yield.
• The dividend may be difficult to sustain: TFS Financial’s payout ratio is 353.1%, and analysts expect a future payout ratio of 282.5% based on projected earnings.
• The bank’s latest quarterly results exceeded expectations, with earnings of $0.11 per share versus the $0.08 consensus estimate and revenue of $89.27 million compared with expectations of $87.05 million.

TFS Financial Corporation (NASDAQ:TFSL - Get Free Report) announced a quarterly dividend on Thursday, August 27th. Shareholders of record on Wednesday, September 9th will be given a dividend of 0.3175 per share by the bank on Wednesday, September 23rd. This represents a c) annualized dividend and a yield of 7.1%. The ex-dividend date of this dividend is Wednesday, September 9th. This is a 12.4% increase from TFS Financial's previous quarterly dividend of $0.28.

TFS Financial has increased its dividend payment by an average of 0.0%annually over the last three years. TFS Financial has a dividend payout ratio of 353.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect TFS Financial to earn $0.40 per share next year, which means the company may not be able to cover its $1.13 annual dividend with an expected future payout ratio of 282.5%.

TFS Financial Stock Performance

NASDAQ:TFSL opened at $17.91 on Friday. The firm's 50-day moving average is $17.76 and its 200-day moving average is $15.90. TFS Financial has a 52-week low of $12.53 and a 52-week high of $19.49. The company has a debt-to-equity ratio of 2.97, a quick ratio of 1.66 and a current ratio of 1.67. The company has a market cap of $5.02 billion, a price-to-earnings ratio of 49.75 and a beta of 0.70.

TFS Financial (NASDAQ:TFSL - Get Free Report) last released its earnings results on Thursday, July 30th. The bank reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.08 by $0.03. TFS Financial had a net margin of 12.36% and a return on equity of 5.32%. The business had revenue of $89.27 million during the quarter, compared to analysts' expectations of $87.05 million. Equities research analysts anticipate that TFS Financial will post 0.36 earnings per share for the current year.

TFS Financial Company Profile

TFS Financial Corporation is a bank holding company for TFS Capital Bank, headquartered in Austin, Texas. The company offers commercial banking and specialty finance solutions designed to meet the unique needs of small and mid-sized businesses. Through its bank charter, TFS Financial provides a full suite of deposit products alongside a range of lending options tailored to growing enterprises.

The bank's lending portfolio includes equipment financing, working capital lines of credit, and term loans structured to support capital expenditures and operational needs.

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