How to buy Discover Financial Services (DFS) shares in Australia

Learn how to easily invest in Discover Financial Services shares.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Discover Financial Services (DFS) is a leading credit services business with stocks listed in the US. It opened the day at US$116.31 after a previous close of US$115.29. During the day the price has varied from a low of USD115.11 to a high of USD117.24. The latest price was USD116.77 (25 minute delay). Discover Financial Services is listed on the NYSE. All prices are listed in US Dollars.

How to buy shares in Discover Financial Services

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Discover Financial Services. Find the share by name or ticker symbol: DFS. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Discover Financial Services reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$115.29, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Discover Financial Services, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Discover Financial Services. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Discover Financial Services stock price (NYSE:DFS)

Use our graph to track the performance of DFS stocks over time.

Discover Financial Services shares at a glance

Information last updated 2021-12-10.
OpenUS$116.31
HighUS$117.24
LowUS$115.11
CloseUS$116.77
Previous closeUS$115.29
Change US$1.48
Change % 1.2837%
Volume 2,313,922
Information last updated 2022-01-17.
52-week rangeUS$79.9358 - US$134.5916
50-day moving average US$116.9326
200-day moving average US$119.3531
Target priceUS$142.83
PE ratio 7.6262
Dividend yield US$1.82 (1.57%)
Earnings per share (TTM) US$16.724

Where to buy Discover Financial Services stock

Name Product Standard brokerage for US shares Currency conversion fee Markets
eToro (global stocks)
US$0
50 pips (US$0.50 for every AU$100 exchanged)
Global shares, US shares, ETFs
Zero brokerage share trading on US, Hong Kong and European stocks with trades as low as $50.
Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider.
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
IG Share Trading
US$0
0.70%
ASX shares, Global shares
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
US$0
50 pips (US$0.50 for every AU$100 exchanged)
ASX shares, US shares, ETFs
Earn up to 15,000 Qantas frequent flyer points when you transfer an exisiting balance or trade. Offer valid for all new and existing Superhero members until 28 February.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
Saxo Capital Markets (Classic account)
US$4
1%
ASX shares, Global shares, ETFs
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
SelfWealth (Basic account)
US$9.5
0.60%
ASX shares, US shares
Trade ASX and US shares for a flat fee of $9.50, regardless of the trade size.
New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.
loading

Compare up to 4 providers

The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Discover Financial Services stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Discover Financial Services share growth calculator

US$

Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.

Discover Financial Services price performance over time

Historical closes compared with the last close of $116.77

1 week (2022-01-11) -9.18%
1 month (2021-12-17) 2.33%
3 months (2021-10-18) -10.21%
6 months (2021-07-17) -2.85%
1 year (2021-01-15) 19.45%
2 years (2020-01-17) 38.29%
3 years (2019-01-18) 75.94%
5 years (2017-01-18) 65.96%

Is Discover Financial Services under- or over-valued?

Valuing Discover Financial Services stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Discover Financial Services's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Discover Financial Services's P/E ratio

Discover Financial Services's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 8x. In other words, Discover Financial Services shares trade at around 8x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Discover Financial Services's PEG ratio

Discover Financial Services's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.3861. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Discover Financial Services's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Discover Financial Services financials

Revenue TTM US$11.5 billion
Operating margin TTM 60.11%
Gross profit TTM US$5.4 billion
Return on assets TTM 4.45%
Return on equity TTM 44.07%
Profit margin 45.1%
Book value 41.413
Market capitalisation US$37.4 billion

TTM: trailing 12 months

Discover Financial Services's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Discover Financial Services.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Discover Financial Services's total ESG risk score

Total ESG risk: 28.56

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Discover Financial Services's overall score of 28.56 (as at 12/31/2018) is pretty good – landing it in it in the 39th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Discover Financial Services is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Discover Financial Services's environmental score

Environmental score: 7.61/100

Discover Financial Services's environmental score of 7.61 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Discover Financial Services's social score

Social score: 19.64/100

Discover Financial Services's social score of 19.64 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Discover Financial Services's governance score

Governance score: 16.82/100

Discover Financial Services's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Discover Financial Services is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Discover Financial Services's controversy score

Controversy score: 1/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Discover Financial Services scored a 1 out of 5 for controversy – the highest score possible, reflecting that Discover Financial Services has managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Discover Financial Services was last rated for ESG on: 2019-01-01.

Total ESG score 28.56
Total ESG percentile 38.78
Environmental score 7.61
Environmental score percentile 8
Social score 19.64
Social score percentile 8
Governance score 16.82
Governance score percentile 8
Level of controversy 1

Discover Financial Services share dividends

11%

Dividend payout ratio: 11.01% of net profits

Recently Discover Financial Services has paid out, on average, around 11.01% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.57% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Discover Financial Services shareholders could enjoy a 1.57% return on their shares, in the form of dividend payments. In Discover Financial Services's case, that would currently equate to about $1.82 per share.

While Discover Financial Services's payout ratio might seem low, this can signify that Discover Financial Services is investing more in its future growth.

Discover Financial Services's most recent dividend payout was on 8 December 2021. The latest dividend was paid out to all shareholders who bought their shares by 22 November 2021 (the "ex-dividend date").

Discover Financial Services share price volatility

Over the last 12 months, Discover Financial Services's shares have ranged in value from as little as US$79.9358 up to US$134.5916. A popular way to gauge a stock's volatility is its "beta".

DFS.US volatility(beta: 1.69)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Discover Financial Services's is 1.6934. This would suggest that Discover Financial Services's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Discover Financial Services overview

Discover Financial Services, through its subsidiaries, operates as a digital banking and payment services company in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts, checking accounts, and sweep accounts. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as offers payment transaction processing and settlement services. Discover has strategic network alliance agreement with Arab Financial Services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site