Discover Financial Services (NYSE:DFS) Plans Dividend Increase – $0.35 Per Share
Discover Financial Services (NYSE:DFS) declared a quarterly dividend on Tuesday, July 25th, RTT News reports. Shareholders of record on Thursday, August 24th will be paid a dividend of 0.35 per share by the financial services provider on Thursday, September 7th. This represents a $1.40 dividend on an annualized basis and a yield of 2.19%. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.30.
Discover Financial Services has increased its dividend payment by an average of 16.2% annually over the last three years and has raised its dividend annually for the last 6 consecutive years. Discover Financial Services has a payout ratio of 20.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Discover Financial Services to earn $6.67 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 18.0%.
Shares of Discover Financial Services (DFS) traded up 2.02% during trading on Tuesday, reaching $63.79. 3,321,542 shares of the company’s stock were exchanged. The stock has a market cap of $24.25 billion, a PE ratio of 10.89 and a beta of 1.47. The stock’s 50 day moving average price is $60.96 and its 200-day moving average price is $65.38. Discover Financial Services has a 52-week low of $53.91 and a 52-week high of $74.33.
Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Tuesday, April 25th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.42 by $0.01. Discover Financial Services had a net margin of 22.08% and a return on equity of 21.86%. The firm had revenue of $2.34 billion during the quarter, compared to analysts’ expectations of $2.36 billion. During the same period in the prior year, the company posted $1.35 EPS. The company’s revenue was up 5.2% on a year-over-year basis. On average, equities research analysts forecast that Discover Financial Services will post $5.98 EPS for the current year.
A number of equities research analysts have recently commented on the stock. William Blair reaffirmed an “outperform” rating on shares of Discover Financial Services in a research note on Tuesday, July 18th. Instinet reaffirmed a “buy” rating and issued a $81.00 price objective (down from $86.00) on shares of Discover Financial Services in a research note on Wednesday, July 12th. Barclays PLC reaffirmed an “equal weight” rating and issued a $70.00 price objective (down from $79.00) on shares of Discover Financial Services in a research note on Thursday, July 13th. BidaskClub raised shares of Discover Financial Services from a “sell” rating to a “hold” rating in a research note on Tuesday, June 20th. Finally, Keefe, Bruyette & Woods reaffirmed a “buy” rating on shares of Discover Financial Services in a research note on Friday, May 12th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating and eighteen have issued a buy rating to the stock. Discover Financial Services presently has a consensus rating of “Buy” and an average price target of $75.56.
Discover Financial Services announced that its board has approved a share buyback plan on Wednesday, June 28th that permits the company to repurchase $2.23 billion in outstanding shares. This repurchase authorization permits the financial services provider to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.
In related news, EVP Carlos Minetti sold 8,000 shares of the firm’s stock in a transaction dated Monday, July 3rd. The shares were sold at an average price of $62.42, for a total transaction of $499,360.00. Following the completion of the sale, the executive vice president now owns 205,149 shares in the company, valued at $12,805,400.58. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO David W. Nelms sold 30,000 shares of the firm’s stock in a transaction dated Monday, May 1st. The stock was sold at an average price of $62.18, for a total transaction of $1,865,400.00. Following the sale, the chief executive officer now owns 1,674,732 shares of the company’s stock, valued at approximately $104,134,835.76. The disclosure for this sale can be found here. Insiders have sold 142,600 shares of company stock valued at $8,976,046 in the last 90 days. 0.96% of the stock is currently owned by corporate insiders.
About Discover Financial Services
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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