SLM (SLM) declares a dividend of $0.11

SLM declared on January 24, 2023 that its board of directors had declared a regular quarterly dividend of $0.11 per share ($0.44 annualized). Shareholders of record as of March 2, 2023 will receive payment on March 15, 2023. Previously, the company paid $0.11 per share.

At the current share price of $16.97/share, the dividend yield of the stock is 2.59%. Looking back five years and taking a sample each week, the average dividend yield was 1.51%, the low 0.59% and the high 3.16%. The standard deviation of returns is 0.71 (n=190).

The current dividend yield is 1.53 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.13. The payout ratio tells us how much of a company’s income is paid out as dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid out as dividends. A payout ratio above one means the company is dipping into its savings to maintain its dividend, which is not a healthy situation. Companies with little growth prospects should pay most of their income in the form of dividends, which generally means a payout ratio between 0.5 and 1.0. Companies with good growth prospects should retain part of their profits in order to invest in these growth prospects, which translates into a payout ratio of zero to 0.5.

The company’s 3-year dividend growth rate is 2.67%, demonstrating that it has increased its dividend over time.

Analyst price forecast suggests 15.20% upside

As of January 31, 2023, the one-year average price target for SLM is $19.55. The forecast ranges from a low of $15.15 to a high of $23.10. The average price target represents a 15.20% increase from its last reported closing price of $16.97.

SLM’s projected annual revenue is $1,468 million, down 12.72%. Projected annual EPS is $2.64, down 16.01%.

Fund Sentiment

There are 829 funds or institutions reporting positions in SLM. This is a decline of four owners or 0.48% in the last quarter.

Average portfolio weight of all funds dedicated to SLM is 0.2541%, an increase of 6.7793%. The total number of shares held by institutions has decreased by 4.69% over the past three months to 292,084,000 shares.

What are the big shareholders doing?

Impactive Capital holds 22,593,389 shares representing 9.03% of the company’s capital. In its previous filing, the company said it held 20,512,599 shares, representing a raise of 9.21%. The company increased its portfolio allocation in SLM of 11.60% over the last quarter.

Massachusetts Financial Services holds 18,862,528 shares representing 7.54% ownership of the company. In its previous filing, the company said it held 20,007,968 shares, representing a decrease of 6.07%. The company decreases its portfolio allocation in SLM of 10.27% over the last quarter.

Ubs Asset Management Americas holds 14,797,472 shares representing 5.91% of the company’s capital. In its previous filing, the company said it held 15,092,528 shares, representing a decrease of 1.99%. The company decreases its portfolio allocation in SLM of 7.83% over the last quarter.

Boston Partners holds 12,050,421 shares representing 4.82% ownership of the company. In its previous filing, the company said it held 15,296,464 shares, representing a decrease of 26.94%. The company decreases its portfolio allocation in SLM of 26.29% over the last quarter.

MVCAX – MFS Mid Cap Value Fund A holds 8,321,337 shares representing 3.33% ownership of the company. In its previous filing, the company said it held 8,372,179 shares, representing a decrease by 0.61%. The company decreases its SLM portfolio allocation of 7.45% over the last quarter.

General information on TDM
(This description is provided by the company.)

Sallie Mae believes that education and lifelong learning, in all its forms, helps people achieve great things. As a leader in private student loans, the company provides financing and expertise to facilitate access to college and offers products and resources to help customers realize new goals and experiences, beyond of the University.

This story originally appeared on Fintel.

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