OneMain Holdings, Inc. (NYSE:OMF) Raises Dividend to $1.04 Per Share

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) declared a quarterly dividend on Wednesday, May 1st, Wall Street Journal reports. Investors of record on Friday, May 10th will be given a dividend of 1.04 per share by the financial services provider on Friday, May 17th. This represents a $4.16 annualized dividend and a yield of 8.19%. The ex-dividend date of this dividend is Thursday, May 9th. This is a positive change from OneMain's previous quarterly dividend of $1.00.

OneMain has raised its dividend by an average of 40.6% annually over the last three years and has raised its dividend every year for the last 4 years. OneMain has a dividend payout ratio of 52.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect OneMain to earn $7.64 per share next year, which means the company should continue to be able to cover its $4.00 annual dividend with an expected future payout ratio of 52.4%.

OneMain Stock Down 2.6 %

NYSE OMF traded down $1.34 during trading hours on Wednesday, hitting $50.77. 2,009,016 shares of the stock were exchanged, compared to its average volume of 1,053,412. The company has a market cap of $6.09 billion, a price-to-earnings ratio of 9.54, a price-to-earnings-growth ratio of 0.70 and a beta of 1.65. OneMain has a 12-month low of $33.67 and a 12-month high of $53.65. The stock has a 50-day moving average of $48.87 and a 200 day moving average of $45.58.

OneMain (NYSE:OMF - Get Free Report) last posted its quarterly earnings results on Tuesday, April 30th. The financial services provider reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.38 by $0.07. The firm had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $907.93 million. OneMain had a net margin of 14.04% and a return on equity of 21.07%. During the same period in the prior year, the company posted $1.46 earnings per share. On average, equities research analysts expect that OneMain will post 5.67 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on OMF. Northland Securities cut shares of OneMain from an "outperform" rating to a "market perform" rating and increased their target price for the company from $46.00 to $49.00 in a report on Wednesday, January 17th. Deutsche Bank Aktiengesellschaft began coverage on shares of OneMain in a report on Wednesday, January 10th. They issued a "buy" rating and a $68.00 target price for the company. StockNews.com raised shares of OneMain from a "hold" rating to a "buy" rating in a report on Wednesday, February 14th. TD Cowen increased their target price on shares of OneMain from $58.00 to $60.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Piper Sandler cut shares of OneMain from an "overweight" rating to a "neutral" rating and dropped their target price for the company from $55.00 to $49.00 in a report on Thursday, February 8th. Four research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $53.31.

About OneMain

OneMain Holdings, Inc, a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans.