COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE: BFH), a company specializing in payment, lending, and saving solutions, has declared a quarterly cash dividend of $0.21 per share. The dividend is scheduled for payment on December 13, 2024, to shareholders on record as of November 8, 2024.
The announcement comes as part of the company's ongoing efforts to provide returns to its investors. Bread Financial is known for its digital-first approach, offering a range of financial products and services. These include private label and co-brand credit cards, as well as the Bread Pay buy now, pay later products, which have been gaining popularity among consumers seeking flexible payment options.
In addition to these services, Bread Financial also markets direct-to-consumer products like the Bread Cashback American Express (NYSE:AXP) Credit Card and Bread Savings accounts, aimed at providing customers with more access and choice in managing their finances.
The company, headquartered in Columbus, Ohio, operates with a workforce of approximately 7,000 global associates. Bread Financial emphasizes its commitment to sustainable business practices as part of its corporate ethos.
This financial move is expected to be of interest to current and potential investors, as it reflects the company's stability and confidence in its financial position. The dividend payout also underscores Bread Financial's commitment to shareholder value.
The information regarding the dividend declaration is based on a press release statement from Bread Financial Holdings, Inc.
In other recent news, Bread Financial Holdings has made significant amendments to its credit agreement, extending the maturity date of its $700 million senior unsecured revolving credit facility to October 18, 2028. The revised agreement includes reduced interest rate spreads and commitment fees, aiming to enhance the company's financial flexibility. Furthermore, the company has reported a rise in its net loss rate and delinquency rate, a result of a revised calculation method introduced in January 2024.
In terms of analyst outlooks, Jefferies has adjusted its perspective on Bread Financial, lowering the price target to $50 from $55, while maintaining a Hold rating. This decision is in anticipation of a rise in the net charge-off rate in the first quarter of 2025. On the other hand, RBC Capital and BofA Securities have increased their price targets to $58 and $54 respectively, following the company's second-quarter earnings report, which exceeded expectations with a net income of $133 million and an adjusted earnings per share of $2.66.
Lastly, Bread Financial has announced strategic partnerships with Saks Fifth Avenue and HP (NYSE:HPQ), indicating the company's ongoing efforts to broaden its business scope. These recent developments reflect the company's active engagement in strengthening its financial position and expanding its market presence.
InvestingPro Insights
Bread Financial Holdings' recent dividend declaration aligns with its track record of consistent shareholder returns. According to InvestingPro data, the company has maintained dividend payments for 9 consecutive years, demonstrating a commitment to providing steady income to investors. The current dividend yield stands at 1.65%, based on the most recent data.
Despite the positive dividend news, it's worth noting that Bread Financial faces some challenges. InvestingPro Tips reveal that 7 analysts have revised their earnings downwards for the upcoming period, and net income is expected to drop this year. This could explain why the stock is currently trading at a low earnings multiple, with a P/E ratio of 5.2.
On a more positive note, Bread Financial has shown strong performance in the stock market recently. The company has experienced a high return over the last year, with a 1-year price total return of 83.75%. Additionally, there has been a large price uptick over the last six months, with a 6-month price total return of 44.96%.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Bread Financial, providing a deeper understanding of the company's financial health and market position.
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