STAMFORD, Conn. - Synchrony Financial (NYSE:SYF), a prominent consumer financial services company with a market capitalization of $27.1 billion, announced dividends for its common and preferred stock today. According to InvestingPro data, the company has maintained dividend payments for 9 consecutive years, with increases in the last 3 years. The company's Board of Directors has declared a quarterly cash dividend of $0.25 per share on common stock, scheduled for payment on February 18, 2025, to shareholders on record as of February 3, 2025.
In addition to the common stock dividend, Synchrony's Board has also declared dividends on its preferred stocks. Holders of the 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and the 8.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, will receive dividends of approximately $14.06 and $20.63 per share, respectively. These amounts translate to $0.351563 per depositary share for Series A and $0.515625 per depositary share for Series B, with the payment date also set for February 18, 2025, to stockholders of record on February 3, 2025. The stock currently yields 1.45%, trading near its 52-week high of $69.39.
Synchrony is known for delivering a comprehensive suite of digitally-enabled financial products that cater to a variety of industries including digital, health and wellness, retail, telecommunications, and more. The company prides itself on connecting partners and consumers through its financial ecosystem, offering diverse financing solutions and digital capabilities to meet specific needs and provide seamless experiences across multiple channels.
This announcement of dividend payments reflects Synchrony's commitment to providing returns to its investors. The information is based on a press release statement from Synchrony Financial.
In other recent news, Synchrony Financial has been the subject of numerous analyst reports. Truist Securities initiated coverage on Synchrony Financial with a Hold rating, citing potential challenges in reconciling positive loan growth with negative spend growth. In contrast, Morgan Stanley (NYSE:MS) upgraded the company's stock from Equalweight to Overweight, citing anticipated earnings per share (EPS) upside. The firm also increased the price target for Synchrony's shares to $82.00, up from $40.00.
Goldman Sachs maintained a Buy rating on Synchrony Financial, highlighting better-than-expected delinquency rates and net charge-offs slightly below the seasonal trend. JPMorgan also upgraded the company's stock from Neutral to Overweight, highlighting the company's relative discount to the market and growth potential.
Synchrony Financial recently reported robust third-quarter earnings, declaring net earnings of $789 million and exceeding consensus estimates. The company also revised its full-year 2024 earnings per share (EPS) guidance upwards to a range of $8.45-$8.55. Moreover, Synchrony Financial has been transparent about its financial health, releasing monthly charge-off and delinquency statistics.
Despite these positive developments, the company anticipates a low single-digit decline in purchase volume for Q4, reflecting ongoing challenges in consumer spending and credit performance. These are among the recent developments regarding Synchrony Financial.
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