OneMain Holdings, Inc. (NYSE:OMF) Plans Dividend Increase – $1.04 Per Share

OneMain Holdings, Inc. (NYSE:OMF) declared a quarterly dividend on Tuesday, April 30th, Wall Street Journal reports. Shareholders 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 dividend on an annualized basis and a dividend yield of 8.20%. 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% per year 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% meaning its dividend is sufficiently covered by earnings. Equities 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 Performance

OneMain stock opened at $50.76 on Thursday. The stock has a market capitalization of $6.09 billion, a price-to-earnings ratio of 9.90, a PEG ratio of 0.72 and a beta of 1.63. OneMain has a 52-week low of $33.67 and a 52-week high of $53.65. The stock’s 50 day moving average price is $48.87 and its two-hundred day moving average price is $45.58.

OneMain (NYSE:OMF) last issued its earnings results on Tuesday, April 30th. The financial services provider reported $1.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.38 by $0.07. OneMain had a return on equity of 20.94% and a net margin of 13.29%. The company had revenue of $1.17 billion for the quarter, compared to analysts’ expectations of $907.93 million. During the same period last year, the business earned $1.46 EPS. On average, equities research analysts forecast that OneMain will post 5.67 EPS for the current year.

Analyst Ratings Changes

A number of brokerages have recently issued reports on OMF. Northland Securities cut shares of OneMain from an “outperform” rating to a “market perform” rating and lifted their price objective for the company from $46.00 to $49.00 in a report on Wednesday, January 17th. TD Cowen lifted their price target on OneMain from $58.00 to $60.00 and gave the company a “buy” rating in a research note on Wednesday. Stephens lowered their price objective on OneMain from $61.00 to $57.00 and set an “overweight” rating for the company in a research note on Thursday, February 8th. StockNews.com raised OneMain from a “hold” rating to a “buy” rating in a research note on Wednesday, February 14th. Finally, Royal Bank of Canada increased their price objective on OneMain from $50.00 to $55.00 and gave the stock an “outperform” rating in a research note on Monday, April 1st. Four investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $53.31.

OneMain Company Profile

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.