OneMain Holdings (OMF) Rewards Investors With Share Buyback

OneMain Holdings, Inc. (NYSE:OMF) recently announced that the board of directors has given approval to buy back $100 million worth of shares. The program has no expiration date.

Doug Shulman, President and CEO of OneMain Holdings, said “This opportunistic share repurchase program augments our existing capital return strategies and illustrates our continued confidence in the strength of the business.”

The company’s capital allocation outline includes inorganic growth opportunities and returning capital to shareholders, with more preference for dividends. Thus, in sync with the framework, OneMain Holdings initiated regular dividend payments from February 2019. Consequently, the company increased its quarterly dividend by 32% to 33 cents per share last month.

Additionally, OneMain Holdings pays special dividend. In February 2020, the company announced a special dividend of $2.50 per share. This and the regular quarterly dividend will be paid out on Mar 13 to shareholders on record as of Feb 26.

Earlier in July 2019, the company had declared a special dividend of $2 per share for the first time. Notably, OneMain Holdings intends to pay special dividend semi-annually.

OneMain Holdings remains committed toward enhancing shareholder value, as evident from its involvement in meaningful capital deployment activities. Also, the company is well poised for growth driven by steady rise in consumer loan demand. However, lower interest rates are a major concern and are likely to hurt the company’s top-line growth.

Shares of this Zacks Rank #3 (Hold) company have rallied 5.5% over the past six months against the industry’s decline of 12%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



Similar Actions by Peers

During the current quarter, among other finance stocks, Popular, Inc. (NASDAQ:BPOP) , East West Bancorp, Inc. (NASDAQ:EWBC) and Jefferies Financial Group Inc. (NYSE:JEF) have also announced share-repurchase authorizations.

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