Discover Financial Services (DFS) to Issue Quarterly Dividend of $0.70 on September 7th

Posted by on Aug 21st, 2023

Discover Financial Services (NYSE:DFS) announced a quarterly dividend on Wednesday, July 19th, RTT News reports. Shareholders of record on Thursday, August 24th will be given a dividend of 0.70 per share by the financial services provider on Thursday, September 7th. This represents a $2.80 annualized dividend and a dividend yield of 3.00%. The ex-dividend date is Wednesday, August 23rd.

Discover Financial Services has raised its dividend payment by an average of 11.0% per year over the last three years and has raised its dividend annually for the last 12 consecutive years. Discover Financial Services has a dividend payout ratio of 21.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Discover Financial Services to earn $13.23 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 21.2%.

Discover Financial Services Stock Performance

NYSE:DFS opened at $93.34 on Monday. The business’s 50-day moving average price is $110.77 and its two-hundred day moving average price is $106.27. Discover Financial Services has a twelve month low of $87.64 and a twelve month high of $122.50. The stock has a market cap of $23.33 billion, a P/E ratio of 6.47, a PEG ratio of 1.32 and a beta of 1.43. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.58.

Discover Financial Services (NYSE:DFS – Get Free Report) last released its quarterly earnings results on Thursday, July 20th. The financial services provider reported $3.54 earnings per share for the quarter, missing the consensus estimate of $3.70 by ($0.16). Discover Financial Services had a net margin of 21.51% and a return on equity of 29.65%. The business had revenue of $3.88 billion during the quarter, compared to analysts’ expectations of $3.88 billion. During the same period in the previous year, the business earned $3.96 EPS. The business’s revenue was up 20.7% on a year-over-year basis. As a group, equities analysts predict that Discover Financial Services will post 12.98 EPS for the current fiscal year.

Wall Street Analyst Weigh In

DFS has been the topic of a number of research reports. Citigroup decreased their price objective on Discover Financial Services from $119.00 to $108.00 and set a “neutral” rating on the stock in a report on Friday, July 21st. Bank of America raised their price objective on Discover Financial Services from $114.00 to $119.00 in a report on Thursday, June 15th. Jefferies Financial Group raised their price objective on Discover Financial Services from $125.00 to $135.00 in a report on Tuesday, July 11th. Stephens reissued an “equal weight” rating and set a $116.00 price objective on shares of Discover Financial Services in a report on Tuesday, August 15th. Finally, Piper Sandler cut Discover Financial Services from an “overweight” rating to a “neutral” rating and decreased their price objective for the company from $130.00 to $112.00 in a report on Friday, July 21st. Eleven research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $115.43.

View Our Latest Analysis on DFS

Institutional Investors Weigh In On Discover Financial Services

A number of large investors have recently made changes to their positions in the business. Orion Portfolio Solutions LLC grew its position in shares of Discover Financial Services by 70.2% in the 2nd quarter. Orion Portfolio Solutions LLC now owns 9,830 shares of the financial services provider’s stock worth $1,149,000 after buying an additional 4,055 shares during the last quarter. Imprint Wealth LLC bought a new stake in shares of Discover Financial Services in the 2nd quarter worth approximately $220,000. GTS Securities LLC bought a new stake in shares of Discover Financial Services in the 2nd quarter worth approximately $2,882,000. Invesco LLC bought a new stake in shares of Discover Financial Services in the 2nd quarter worth approximately $235,000. Finally, Public Employees Retirement System of Ohio grew its position in shares of Discover Financial Services by 8.7% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 152,208 shares of the financial services provider’s stock worth $17,786,000 after buying an additional 12,230 shares during the last quarter. 83.81% of the stock is currently owned by institutional investors.

About Discover Financial Services

(Get Free Report)

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.

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Dividend History for Discover Financial Services (NYSE:DFS)

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