Discover Sees Higher Profits; Raises Dividend 40% (DFS)
Payment services company, Discover Financial Services(DFS) reported increased profits on Thursday, beating analysts estimates.
The Riverwoods, IL based company reported fourth quarter earnings of $541 million, or $1.07 per share, compared with $508 million, or 95 cents per share last year. Analysts expected to see EPS of $1.10 for the quarter.
The company reported revenue of $2 billion, beating analysts estimates of $1.96 billion.
Additionally, DFS reported that they will be increasing their dividend payment by 40% from 10 cents quarterly to 14 cents quarterly, equaling an annualized dividend of 56 cents per share. The next dividend is set to be paid on January 17 to shareholders of record on January 3. The stock will go ex-dividend on December 31.
Discover shares were down $1.42, or -3.57% during Thursday morning trading.
The Bottom Line
Shares of Discover Financial Services (DFS) have a 1.41% dividend yield, based on last night’s closing stock price of $39.77. The stock has technical support in the $36-$38 price area. The stock is trading near all-time highs.
Discover Financial Services(DFS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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