COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE: BFH), a company specializing in payment, lending, and saving solutions, disclosed today that its Board of Directors has approved a quarterly cash dividend. The dividend of $0.21 per share on the company's common stock is scheduled to be paid on September 13, 2024, to shareholders on record as of August 9, 2024.
Bread Financial, known for its digital-first approach and data-driven insights, offers a variety of financial services, including private label and co-brand credit cards, as well as its Bread Pay™ buy now, pay later options. The company also provides direct-to-consumer products like the Bread Cashback™ American Express (NYSE:AXP)® Credit Card and Bread Savings™ accounts, aimed at delivering more access and choice for customers.
The Ohio-based financial services firm operates with a focus on personalized solutions and customer experience, leveraging technology to offer flexible financial products. With a workforce of approximately 7,000 global associates, Bread Financial emphasizes its commitment to sustainable business practices.
The information reported is based on a press release statement from Bread Financial Holdings, Inc.
In other recent news, Bread Financial has been the subject of various analyst adjustments. Compass Point initiated coverage with a Buy rating and a price target of $54.00, while Jefferies, RBC Capital, and Evercore ISI increased their price targets to $45.00. However, Goldman Sachs (NYSE:GS) maintained its Sell rating despite acknowledging better-than-expected delinquency and net charge-off performance.
Bread Financial's core earnings per share (EPS) for fiscal years 2024 and 2025 are projected to be $5.50 and $6.30 respectively, indicating a year-over-year core EPS decline of 46% for FY24, followed by a 15% increase for FY25. Bread Financial reported a net loss rate of 8.8% in May 2024, up from 8.4% in the previous year. The delinquency rates also rose slightly from 5.5% to 5.9% year-over-year.
In corporate developments, Bread Financial has secured a multi-year agreement with Saks Fifth Avenue to offer co-branded and private-label credit cards, with the transition expected to be completed in the third quarter of 2024. The company also welcomed two new independent directors, Praniti Lakhwara and John J. Fawcett.
These are recent developments in Bread Financial.
InvestingPro Insights
Bread Financial Holdings, Inc. (NYSE: BFH) has recently announced a consistent dividend payout, underscoring its commitment to shareholder returns. This move aligns with the company's track record of maintaining dividend payments for nine consecutive years, a testament to its financial stability and dedication to delivering shareholder value.
InvestingPro data indicates that Bread Financial is trading at a low earnings multiple with a P/E Ratio of 6.34 and an adjusted P/E Ratio for the last twelve months as of Q1 2024 standing at 5.98. This could suggest that the company's stock is potentially undervalued relative to its earnings, which may be of interest to value-oriented investors.
Despite a challenging revenue growth landscape, as evidenced by a -5.14% change in the last twelve months as of Q1 2024, Bread Financial has demonstrated strong price performance with a 38.0% total return over the last three months and an impressive 55.94% over the last six months. This robust market performance could indicate investor confidence in the company's future prospects and operational strategies.
For investors seeking more in-depth analysis, InvestingPro offers additional insights, including the fact that 7 analysts have revised their earnings upwards for the upcoming period, signaling potential optimism about the company's financial outlook. Moreover, with a dividend yield of 1.67% as of the most recent data, Bread Financial remains an attractive option for income-focused investors.
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