SLM Corporation to Issue Quarterly Dividend of $0.13 (NASDAQ:SLM)

Key Points

• SLM Corporation declared a quarterly dividend of $0.13 per share, with shareholders of record on September 4 set to be paid on September 15. The dividend implies an annualized yield of about 2.1%.
• The company’s dividend appears well covered, with a 15.0% payout ratio, and analysts expect SLM to earn enough next year to keep coverage strong. SLM has also increased its dividend modestly over the past few years.
• SLM recently reported better-than-expected quarterly results, posting $1.54 EPS versus the $1.14 consensus estimate and revenue of $559.99 million. The company, which focuses on private student loans and related banking products, continues to show solid profitability metrics.

SLM Corporation (NASDAQ:SLM - Get Free Report) declared a quarterly dividend on Wednesday, July 22nd. Investors of record on Friday, September 4th will be given a dividend of 0.13 per share by the credit services provider on Tuesday, September 15th. This represents a c) annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, September 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 payout ratio of 15.0% meaning its dividend is sufficiently covered by earnings. Analysts expect SLM to earn $3.39 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 15.3%.

SLM Price Performance

NASDAQ SLM opened at $25.22 on Thursday. The firm's 50-day simple moving average is $23.46 and its two-hundred day simple moving average is $23.34. The company has a market cap of $4.76 billion, a PE ratio of 6.99, a price-to-earnings-growth ratio of 2.30 and a beta of 0.94. SLM has a 52 week low of $17.77 and a 52 week high of $33.50. The company has a quick ratio of 1.29, a current ratio of 1.30 and a debt-to-equity ratio of 2.59.

SLM (NASDAQ:SLM - Get Free Report) last issued its earnings results on Thursday, April 23rd. The credit services provider reported $1.54 EPS for the quarter, topping the consensus estimate of $1.14 by $0.40. The business had revenue of $559.99 million during the quarter, compared to the consensus estimate of $486.05 million. SLM had a return on equity of 34.80% and a net margin of 26.42%.The firm's revenue was down 3.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.40 EPS. Research analysts predict that SLM will post 3.16 earnings per share for the current year.

About SLM

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.

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