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Bread Financial HoldingsLTS:0HCR +0.55%62 5-Year Yield-on-Cost % is 0.69 as of Jul. 22, 2026, which is 44% below its 10-year median of 1.23. GuruFocus rates LTS:0HCR with a GF Score™ of 62/100 and a GF Value™ of $57.05 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 211 Credit Services companies, Bread Financial Holdings ranks worse than 84.83% on this metric.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Bread Financial Holdings 5-Year Yield-on-Cost % Related Terms
LTS:0HCR vs SLM, NNI, UPST: 5-Year Yield-on-Cost % Comparison
For the Credit Services subindustry, Bread Financial Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bread Financial Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Bread Financial Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Bread Financial Holdings (LTS:0HCR) has a 5-Year Yield-on-Cost % of 0.69 as of Jul. 22, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Bread Financial Holdings and its competitors. This is 44% below median its historical median of 1.23. Over the past decade, Bread Financial Holdings' 5-Year Yield-on-Cost % has ranged from 0.20 to 9.09. According to the industry distribution chart, Bread Financial Holdings ranks #179 out of 211 companies in the Credit Services industry, placing it in the top 84.8%.
Is Bread Financial Holdings' 5-Year Yield-on-Cost % too high?
Bread Financial Holdings' current 5-Year Yield-on-Cost % of 0.69 is 44% below median its 10-year median of 1.23. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 9.09. The Credit Services industry median 5-Year Yield-on-Cost % is 4.55. Bread Financial Holdings' value of 0.69 is 84.8% below this industry median. Based on the distribution chart, Bread Financial Holdings ranks #179 out of 211 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Bread Financial Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bread Financial Holdings' 5-Year Yield-on-Cost % compare to SLM and NNI?
According to the Credit Services industry distribution chart, Bread Financial Holdings ranks #179 out of 211 companies for 5-Year Yield-on-Cost %. This places Bread Financial Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.55. Bread Financial Holdings' value of 0.69 is 84.8% below this benchmark. Historically, Bread Financial Holdings' own 5-Year Yield-on-Cost % has ranged from 0.20 to 9.09 over the past decade. While the company's 10-year median is 1.23 vs. the industry median of 4.55, 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 5-Year Yield-on-Cost % for a Credit Services company?
The median 5-Year Yield-on-Cost % among Credit Services companies is 4.55, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bread Financial Holdings's current 5-Year Yield-on-Cost % of 0.69 is 84.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Bread Financial Holdings and its competitors. For the Credit Services industry, the median 5-Year Yield-on-Cost % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bread Financial Holdings's current 5-Year Yield-on-Cost % is 0.69, which is 44% below median its own 10-year median of 1.23. 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 $57.05, compared to a current price of $100.65 — trading 76.4% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.69, which is 44% below median its 10-year median of 1.23 and 84.8% below the Credit Services industry median of 4.55. Bread Financial Holdings' overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Bread Financial Holdings (LTS:0HCR), the current 5-Year Yield-on-Cost % is 0.69 as of Jul. 22, 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 $100.65 is trading 76.4% above its estimated GF Value™ of $57.05.
GuruFocus considers Bread Financial Holdings to be Significantly Overvalued.
Key valuation signals for LTS:0HCR:
5-Year Yield-on-Cost %: 0.69 (44% below median its 10-year median of 1.23)
GF Value™: $57.05 vs. price of $100.65 (76.4% above fair value)
Industry Position: 84.8% below the Credit Services median (#179 of 211)
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.
62GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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