SLM Corporation (NASDAQ:SLM) Declares $0.13 Quarterly Dividend

Key Points

• SLM declared a quarterly dividend of $0.13 per share (annualized $0.52), payable June 15 to shareholders of record June 4, representing a yield of about 2.3%.
• Dividend appears well covered—SLM's payout ratio is roughly 15%, and analysts project about $3.31 EPS next year (implying a future payout ratio near 15.7%), suggesting the dividend is sustainable.
• Recent results and valuation: SLM beat Q1 estimates with $1.12 EPS vs. $0.95 expected and reported strong margins, the stock trades at a P/E of 6.66, and analysts have a consensus "Hold" rating with a $29.40 price target.

SLM Corporation (NASDAQ:SLM - Get Free Report) announced a quarterly dividend on Wednesday, April 22nd. Shareholders of record on Thursday, June 4th will be paid a dividend of 0.13 per share by the credit services provider on Monday, June 15th. This represents a c) dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Thursday, June 4th.

SLM has raised its dividend by an average of 0.3%per year over the last three years and has increased its dividend every year for the last 1 years. SLM has a dividend payout ratio of 15.0% meaning its dividend is sufficiently covered by earnings. Research analysts expect SLM to earn $3.31 per share next year, which means the company should continue to be able to cover its $0.52 annual dividend with an expected future payout ratio of 15.7%.

SLM Price Performance

Shares of SLM opened at $23.10 on Thursday. SLM has a twelve month low of $17.77 and a twelve month high of $34.97. The stock's 50 day moving average is $21.20 and its two-hundred day moving average is $25.19. The firm has a market capitalization of $4.58 billion, a PE ratio of 6.66, a P/E/G ratio of 2.67 and a beta of 1.04. The company has a current ratio of 1.28, a quick ratio of 1.24 and a debt-to-equity ratio of 2.44.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly earnings data on Thursday, January 22nd. The credit services provider reported $1.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.95 by $0.17. SLM had a return on equity of 34.79% and a net margin of 26.04%.The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $383.43 million. During the same quarter in the previous year, the company earned $0.50 EPS. Research analysts anticipate that SLM will post 2.79 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Zacks Research raised SLM from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Morgan Stanley decreased their price target on SLM from $29.00 to $26.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 16th. Wells Fargo & Company decreased their price target on SLM from $32.00 to $29.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. JPMorgan Chase & Co. decreased their price target on SLM from $26.00 to $22.00 and set an "underweight" rating on the stock in a research note on Thursday, April 9th. Finally, Barclays decreased their price target on SLM from $35.00 to $27.00 and set an "overweight" rating on the stock in a research note on Monday, April 6th. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $29.40.

SLM Company Profile

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.