5 Finance Stocks that Pay Dividends

3. OneMain Holdings, Inc. (NYSE: OMF)

Number of Hedge Fund Holders: 43
Dividend Yield: 3.1%

OneMain Holdings, Inc. (NYSE: OMF), a US-based financial services holding company, operates throughout the country with its subsidiaries such as OneMain Finance Corporation and Ask Benjamin Inc. The company ranks 3rd on our list of finance stocks that pay dividends.

Arren Cyganovich, an analyst at Citigroup, raised the price target on shares of OneMain Holdings, Inc. (NYSE: OMF) from $64 to $71 just this July. The analyst also reiterating a Buy rating on the stock at the same time.

In the second quarter of 2021, OneMain Holdings, Inc. (NYSE: OMF) had an EPS of $2.66, beating estimates by $0.46. The company’s revenue was $989 million, up 3.67% year over year and also beating estimates by $23.72 million. OneMain Holdings, Inc. (NYSE: OMF) has also gained 4.53% in the past 6 months and 24.15% year to date.

By the end of the first quarter of 2021, 43 hedge funds out of the 866 tracked by Insider Monkey held stakes in OneMain Holdings, Inc. (NYSE: OMF) worth roughly $886 million. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $654 million.

Miller Value Partners, an investment management firm, mentioned OneMain Holdings, Inc. (NYSE: OMF) in its fourth-quarter 2020 investor letter. Here’s what they said:

“OneMain Holdings (OMF) was the top contributor over the quarter, advancing 56.0% after reporting Q3 Earnings Per Share (EPS) of $2.19, well above consensus of $1.26 and the quarterly dividend, which was increased 36% to $0.45/share (3.5% annualized yield and 11.5% Trailing Twelve Month (TTM) yield). Net interest income of $836M beat estimates of $778M, implying a 24.3% asset yield and 18.7% net interest margin. Origination volumes increased 41% sequentially to $2.9Bn on continued strength in digital while end-of-period net receivables were flat at $17.8Bn. Credit quality remains excellent with net charge-offs of 5.2%, the lowest level since 3Q 2015. Management guided to year-end receivables of $18.1Bn, net charge-offs of 5.6% (from 5.8%-6.0%), and net leverage of 4.3x-4.5x.”