Discover Financial Services (NYSE:DFS) declared a quarterly dividend on Thursday, October 18th, RTT News reports. Shareholders of record on Wednesday, November 21st will be paid a dividend of 0.40 per share by the financial services provider on Thursday, December 6th. This represents a $1.60 annualized dividend and a yield of 2.27%. The ex-dividend date is Tuesday, November 20th.
Discover Financial Services has raised its dividend payment by an average of 12.2% per year over the last three years and has increased its dividend annually for the last 7 consecutive years. Discover Financial Services has a dividend payout ratio of 20.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Discover Financial Services to earn $8.67 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 18.5%.
DFS traded down $0.65 on Friday, hitting $70.56. 1,477,637 shares of the company were exchanged, compared to its average volume of 2,233,043. The firm has a market capitalization of $23.77 billion, a P/E ratio of 11.80, a PEG ratio of 0.73 and a beta of 1.50. Discover Financial Services has a fifty-two week low of $63.31 and a fifty-two week high of $81.93. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 2.58.
In other Discover Financial Services news, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction that occurred on Tuesday, September 4th. The shares were sold at an average price of $78.21, for a total transaction of $293,287.50. Following the transaction, the executive vice president now owns 133,852 shares of the company’s stock, valued at $10,468,564.92. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Cynthia A. Glassman sold 2,000 shares of the stock in a transaction that occurred on Tuesday, November 6th. The stock was sold at an average price of $69.50, for a total transaction of $139,000.00. Following the transaction, the director now directly owns 54,032 shares in the company, valued at approximately $3,755,224. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 104,100 shares of company stock worth $7,795,625. 0.81% of the stock is owned by company insiders.
Discover Financial Services announced that its board has approved a stock repurchase plan on Thursday, July 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 11.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.
Several analysts have recently commented on DFS shares. Zacks Investment Research lowered shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Monday, July 16th. Sandler O’Neill reiterated a “buy” rating and issued a $87.00 price target on shares of Discover Financial Services in a research report on Friday, July 27th. JPMorgan Chase & Co. increased their price target on shares of Discover Financial Services from $78.00 to $81.00 and gave the company a “neutral” rating in a research report on Friday, July 27th. Bank of America raised their target price on shares of Discover Financial Services from $86.00 to $92.00 and gave the stock a “buy” rating in a research report on Friday, September 21st. Finally, Wells Fargo & Co raised their target price on shares of Discover Financial Services from $76.00 to $82.00 and gave the stock a “market perform” rating in a research report on Monday, October 1st. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $86.80.
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About Discover Financial Services
Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.
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