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

OneMain Holdings, Inc. (NYSE:OMF) 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 dividend on an annualized basis and a yield of 8.20%. The ex-dividend date is Thursday, May 9th. This is a boost from OneMain’s previous quarterly dividend of $1.00.

OneMain has increased its dividend payment by an average of 40.6% annually over the last three years and has raised its dividend annually for the last 4 consecutive years. OneMain has a payout ratio of 52.1% meaning 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 Price Performance

OMF stock traded down $1.35 during midday trading on Wednesday, reaching $50.76. The company had a trading volume of 2,009,015 shares, compared to its average volume of 1,047,643. The company has a market capitalization of $6.09 billion, a price-to-earnings ratio of 9.46, a price-to-earnings-growth ratio of 0.70 and a beta of 1.65. The stock has a 50 day moving average price of $48.78 and a 200-day moving average price of $45.55. OneMain has a 1-year low of $33.67 and a 1-year high of $53.65.

OneMain (NYSE:OMF) last posted its quarterly earnings results on Tuesday, April 30th. The financial services provider reported $1.45 EPS for the quarter, beating analysts’ consensus estimates of $1.38 by $0.07. The business had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $907.93 million. OneMain had a return on equity of 21.07% and a net margin of 14.04%. During the same quarter in the previous year, the firm earned $1.46 earnings per share. As a group, research analysts anticipate that OneMain will post 5.67 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have commented on OMF shares. Deutsche Bank Aktiengesellschaft started coverage on OneMain in a research note on Wednesday, January 10th. They set a “buy” rating and a $68.00 target price for the company. JPMorgan Chase & Co. boosted their price target on OneMain from $51.00 to $52.00 and gave the stock an “overweight” rating in a report on Wednesday. Barclays cut their target price on shares of OneMain from $57.00 to $54.00 and set an “overweight” rating on the stock in a research report on Thursday, February 8th. Piper Sandler downgraded shares of OneMain from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $55.00 to $49.00 in a research report on Thursday, February 8th. Finally, Royal Bank of Canada lifted 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. Four equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat.com, OneMain presently has a consensus 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.