Bread Financial HoldingsLTS:0HCR +0.52%64 Dividend Payout Ratio is 0.06 as of Mar. 2026, which is 45% below its 10-year median of 0.11. GuruFocus rates LTS:0HCR with a GF Score™ of 64/100 and a GF Value™ of $57.30 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 194 Credit Services companies, Bread Financial Holdings ranks better than 88.66% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Bread Financial Holdings's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.06.
The historical rank and industry rank for Bread Financial Holdings's Dividend Payout Ratio or its related term are showing as below:
LTS:0HCR'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.11 Max: 0.19
Current: 0.07
During the past 13 years, the highest Dividend Payout Ratio of Bread Financial Holdings was 0.19. The lowest was 0.03. And the median was 0.11.
LTS:0HCR's Dividend Payout Ratio is ranked better than 88.66% of 194
companies
in the Credit Services industry
Industry Median: 0.32
vs LTS:0HCR: 0.07
During the past 13 years, the highest Trailing Annual Dividend Yield of Bread Financial Holdings was 11.93%. The lowest was 0.26%. And the median was 1.63%.
During the past 12 months, Bread Financial Holdings's average Dividends Per Share Growth Rate was 4.80% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 0.80% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was -5.30% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Bread Financial Holdings was 69.20% per year. The lowest was -30.70% per year. And the median was -12.60% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Bread Financial Holdings (LTS:0HCR) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Bread Financial Holdings Dividend Payout Ratio Related Terms
Bread Financial Holdings Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Bread Financial Holdings's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bread Financial Holdings Dividend Payout Ratio Chart
LTS:0HCR vs SLM, NNI, UPST: Dividend Payout Ratio Comparison
For the Credit Services subindustry, Bread Financial Holdings's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bread Financial Holdings Dividend Payout Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bread Financial Holdings's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Bread Financial Holdings's Dividend Payout Ratio falls into.
Bread Financial Holdings Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Bread Financial Holdings's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bread Financial Holdings (LTS:0HCR) has a Dividend Payout Ratio of 0.06 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Bread Financial Holdings and its competitors. This is 45% below median its historical median of 0.11. Over the past decade, Bread Financial Holdings' Dividend Payout Ratio has ranged from 0.03 to 0.19. According to the industry distribution chart, Bread Financial Holdings ranks #22 out of 194 companies in the Credit Services industry, placing it in the top 11.3%.
Is Bread Financial Holdings' Dividend Payout Ratio too high?
Bread Financial Holdings' current Dividend Payout Ratio of 0.06 is 45% below median its 10-year median of 0.11. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.19. The Credit Services industry median Dividend Payout Ratio is 0.32. Bread Financial Holdings' value of 0.06 is 81.3% below this industry median. Based on the distribution chart, Bread Financial Holdings ranks #22 out of 194 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Bread Financial Holdings has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bread Financial Holdings' Dividend Payout Ratio compare to SLM and NNI?
According to the Credit Services industry distribution chart, Bread Financial Holdings ranks #22 out of 194 companies for Dividend Payout Ratio. This places Bread Financial Holdings in the top 11% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.32. Bread Financial Holdings' value of 0.06 is 81.3% below this benchmark. Historically, Bread Financial Holdings' own Dividend Payout Ratio has ranged from 0.03 to 0.19 over the past decade. While the company's 10-year median is 0.11 vs. the industry median of 0.32, Bread Financial Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Credit Services company?
The median Dividend Payout Ratio among Credit Services companies is 0.32, based on 194 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bread Financial Holdings's current Dividend Payout Ratio of 0.06 is 81.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Bread Financial Holdings and its competitors. For the Credit Services industry, the median Dividend Payout Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bread Financial Holdings's current Dividend Payout Ratio is 0.06, which is 45% below median its own 10-year median of 0.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bread Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Bread Financial Holdings (LTS:0HCR) is currently considered Significantly Overvalued. The stock's GF Value™ is $57.30, compared to a current price of $108.74 — trading 89.8% above its estimated fair value. The current Dividend Payout Ratio is 0.06, which is 45% below median its 10-year median of 0.11 and 81.3% below the Credit Services industry median of 0.32. Bread Financial Holdings' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Bread Financial Holdings (LTS:0HCR), the current Dividend Payout Ratio is 0.06 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bread Financial Holdings (LTS:0HCR) Overvalued in 2026?
Based on GuruFocus' analysis, Bread Financial Holdings stock appears to be overvalued.
The current stock price of $108.74 is trading 89.8% above its estimated GF Value™ of $57.30.
GuruFocus considers Bread Financial Holdings to be Significantly Overvalued.
Key valuation signals for LTS:0HCR:
Dividend Payout Ratio: 0.06 (45% below median its 10-year median of 0.11)
GF Value™: $57.30 vs. price of $108.74 (89.8% above fair value)
Industry Position: 81.3% below the Credit Services median (#22 of 194)
No single metric tells the full story. See the LTS:0HCR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formed by a combination of JCPenney's credit card processing unit and The Limited's credit card bank business, Bread Financial is a provider of private-label and co-branded credit cards, loyalty programs, and marketing services. The company's most financially significant unit is its credit card business that partners with retailers to jointly market Bread's credit cards to their customers. The company also retains a minority interest in spun-off LoyaltyOne, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.
64GF Score
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