Discover Financial Services (NYSE:DFS) Increases Dividend to $0.60 Per Share

Discover Financial Services (NYSE:DFS) announced a quarterly dividend on Wednesday, April 27th, RTT News reports. Shareholders of record on Thursday, May 26th will be given a dividend of 0.60 per share by the financial services provider on Thursday, June 9th. This represents a $2.40 dividend on an annualized basis and a yield of 2.22%. The ex-dividend date is Wednesday, May 25th. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.50.

Discover Financial Services has raised its dividend by an average of 7.8% per year over the last three years and has increased its dividend annually for the last 12 consecutive years. Discover Financial Services has a dividend payout ratio of 16.2% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Discover Financial Services to earn $14.68 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 16.3%.

Discover Financial Services stock opened at $108.11 on Tuesday. The company has a market cap of $30.38 billion, a P/E ratio of 6.38, a price-to-earnings-growth ratio of 0.24 and a beta of 1.45. The company has a debt-to-equity ratio of 1.38, a quick ratio of 1.26 and a current ratio of 1.26. Discover Financial Services has a one year low of $98.38 and a one year high of $135.69. The business has a fifty day moving average of $111.32 and a two-hundred day moving average of $115.12.

Discover Financial Services (NYSE:DFSGet Rating) last released its quarterly earnings results on Wednesday, April 27th. The financial services provider reported $4.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.58 by $0.64. The business had revenue of $2.90 billion during the quarter, compared to the consensus estimate of $2.99 billion. Discover Financial Services had a return on equity of 41.57% and a net margin of 38.42%. The business’s revenue was up 3.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $5.04 EPS. Sell-side analysts predict that Discover Financial Services will post 14.78 EPS for the current year.

Several research analysts have recently issued reports on the company. Wells Fargo & Company cut their price target on Discover Financial Services from $135.00 to $127.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 6th. Wolfe Research downgraded Discover Financial Services from an “outperform” rating to a “peer perform” rating and set a $97.00 price target for the company. in a research note on Thursday, May 12th. StockNews.com initiated coverage on shares of Discover Financial Services in a research note on Thursday, March 31st. They issued a “hold” rating for the company. Piper Sandler raised shares of Discover Financial Services from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $125.00 to $142.00 in a research note on Monday, January 24th. They noted that the move was a valuation call. Finally, Citigroup boosted their target price on shares of Discover Financial Services from $154.00 to $157.00 in a research note on Friday, April 29th. Six research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $138.76.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Toroso Investments LLC boosted its holdings in Discover Financial Services by 3.1% in the 1st quarter. Toroso Investments LLC now owns 3,299 shares of the financial services provider’s stock worth $364,000 after acquiring an additional 98 shares during the period. Loomis Sayles & Co. L P raised its position in shares of Discover Financial Services by 5.2% in the 1st quarter. Loomis Sayles & Co. L P now owns 2,961 shares of the financial services provider’s stock valued at $326,000 after purchasing an additional 146 shares in the last quarter. Advisory Services Network LLC raised its position in shares of Discover Financial Services by 2.4% in the 1st quarter. Advisory Services Network LLC now owns 7,168 shares of the financial services provider’s stock valued at $789,000 after purchasing an additional 168 shares in the last quarter. Penserra Capital Management LLC raised its position in shares of Discover Financial Services by 17.7% in the 4th quarter. Penserra Capital Management LLC now owns 1,302 shares of the financial services provider’s stock valued at $150,000 after purchasing an additional 196 shares in the last quarter. Finally, Baird Financial Group Inc. raised its position in shares of Discover Financial Services by 0.8% in the 1st quarter. Baird Financial Group Inc. now owns 27,565 shares of the financial services provider’s stock valued at $3,038,000 after purchasing an additional 206 shares in the last quarter. Hedge funds and other institutional investors own 85.53% of the company’s stock.

About Discover Financial Services (Get Rating)

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; private student loans, personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.

Further Reading

Dividend History for Discover Financial Services (NYSE:DFS)

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