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

OneMain Holdings, Inc. (NYSE:OMF) announced 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 yield of 8.19%. The ex-dividend date of this dividend is Thursday, May 9th. This is a boost from OneMain’s previous quarterly dividend of $1.00.

OneMain has raised its dividend payment by an average of 40.6% annually over the last three years and has increased its dividend annually for the last 4 consecutive years. OneMain has a dividend payout ratio of 52.1% indicating that its dividend is sufficiently covered by earnings. 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

Shares of NYSE:OMF opened at $50.77 on Thursday. OneMain has a one year low of $33.67 and a one year high of $53.65. The stock has a fifty day moving average of $48.87 and a 200-day moving average of $45.58. The company has a market capitalization of $6.09 billion, a PE ratio of 9.90, a price-to-earnings-growth ratio of 0.72 and a beta of 1.63.

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

Wall Street Analyst Weigh In

Several research firms have commented on OMF. Royal Bank of Canada increased their target price on shares of OneMain from $50.00 to $55.00 and gave the stock an “outperform” rating in a research report on Monday, April 1st. Piper Sandler cut shares of OneMain from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $55.00 to $49.00 in a report on Thursday, February 8th. Barclays decreased their price target on shares of OneMain from $57.00 to $54.00 and set an “overweight” rating for the company in a report on Thursday, February 8th. 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 research note on Wednesday, January 17th. Finally, Wells Fargo & Company increased their target price on shares of OneMain from $43.00 to $48.00 and gave the company an “equal weight” rating in a research note on Thursday, January 4th. 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.com, the company has an average rating of “Moderate Buy” and a consensus target price 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.