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COLUMBUS, Ohio - Bread Financial Holdings, Inc. (NYSE:BFH), a $2.8 billion market cap financial services company with a "GOOD" overall financial health score according to InvestingPro, announced Thursday its board of directors has approved a 10% increase in its quarterly cash dividend and expanded its share repurchase program.
The financial services company will pay a quarterly dividend of $0.23 per share on December 12, 2025, to stockholders of record as of November 7, 2025, up from the previous $0.21 per share. This continues the company’s impressive track record of maintaining dividend payments for 10 consecutive years, with the stock currently offering a 1.42% dividend yield.
Additionally, the board authorized a $200 million increase to the company’s existing share repurchase program. With $140 million already available under the current authorization, Bread Financial now has $340 million total capacity for share buybacks. The repurchase program has no expiration date.
"Our strong capital and cash flow generation, coupled with our strong balance sheet, underscore our flexibility to execute all of our capital and growth priorities concurrently," said Ralph Andretta, president and chief executive officer of Bread Financial, in a press release statement. The company’s robust financial position is reflected in its P/E ratio of 10.3x and strong cash flow metrics. For deeper insights into BFH’s valuation and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial health scores and detailed Pro Research Reports.
The company noted that share repurchases will depend on market conditions and other factors, including legal and regulatory requirements. The authorization does not obligate Bread Financial to acquire any specific number of shares and may be suspended or terminated at any time. According to InvestingPro data, management has been actively executing share buybacks, demonstrating their commitment to returning value to shareholders.
Bread Financial provides payment, lending and saving solutions to U.S. consumers, including general purpose credit cards and savings products. The company also offers private label and co-brand credit cards for various retail partners.
In other recent news, Bread Financial Holdings reported its Q2 2025 earnings, revealing a strong performance with adjusted earnings per share (EPS) of $3.15 and a net income of $149 million. The company’s revenue reached $929 million, showing a slight 1% decline compared to the previous year. Despite the revenue dip, credit sales grew by 4%, indicating a positive trend in consumer activity. In addition to the earnings report, Citizens has reiterated its Market Perform rating for Bread Financial, maintaining the previous price target. This decision reflects ongoing competitive pressures from Buy Now, Pay Later (BNPL) offerings, which continue to capture market share in the consumer credit sector. These developments highlight the challenges and opportunities Bread Financial faces in the current financial landscape.
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