STAMFORD, Conn. - Synchrony Financial (NYSE:SYF) has declared a quarterly cash dividend for its common and preferred stockholders. The company's Board of Directors announced a dividend of $0.25 per share on its common stock, scheduled for payment on November 15, 2024, to shareholders of record as of November 4, 2024.
In addition to the common stock dividend, dividends on preferred stock were also declared. Holders of Synchrony's 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and 8.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, will receive dividends. The Series A Preferred Stock dividend is approximately $14.06 per share, which is equivalent to $0.351563 per depositary share. The Series B Preferred Stock will have a dividend of approximately $20.63 per share, or $0.515625 per depositary share. These dividends are also payable on November 15 to stockholders of record on November 4.
Synchrony Financial, a premier consumer financial services company, is known for its digitally-enabled product suites across various industries such as digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet, and more. The company boasts a diverse group of partners, including national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers. Synchrony aims to connect its partners and consumers through its financial ecosystem, offering financing solutions and digital capabilities tailored to meet their specific needs and enable seamless experiences.
This announcement of dividends is based on a press release statement from Synchrony Financial. The declaration of dividends is a routine part of the company's financial management, and it reflects the ongoing commitment to return value to its shareholders. The company's performance and financial health typically influence dividend decisions, and the recent declaration indicates stability in Synchrony's operations and confidence in its financial position.
In other recent news, Synchrony Financial has been the focus of several analyst upgrades following robust third-quarter earnings. The company reported net earnings of $789 million, or $1.94 per diluted share, surpassing consensus estimates. Synchrony Financial also revised its full-year 2024 earnings per share (EPS) guidance upwards to a range of $8.45-$8.55. Reflecting these strong results, Baird, RBC Capital, Wells Fargo, and JPMorgan all increased their price targets for the company, maintaining neutral to outperform ratings.
The company's solid performance was attributed to proactive payment protection controls (PPPCs) and a decline in year-over-year delinquency growth. However, Synchrony Financial is also navigating uncertainties related to the Consumer Financial Protection Bureau's late fee rule litigation. The company remains focused on long-term risk-adjusted returns and plans to adapt strategies based on portfolio performance and market conditions.
Recent developments also include the addition of 4.7 million new accounts and the generation of $45 billion in purchase volume. Despite these achievements, the company anticipates a low single-digit decline in purchase volume for Q4. These updates provide investors with a snapshot of Synchrony Financial's recent performance and future expectations as stated by the company and various analyst firms.
InvestingPro Insights
Synchrony Financial's recent dividend declaration aligns with its strong financial performance and commitment to shareholder value. According to InvestingPro data, the company's dividend yield stands at 1.82%, with an impressive track record of maintaining dividend payments for 9 consecutive years. This consistency in dividend payouts, as highlighted by an InvestingPro Tip, underscores Synchrony's financial stability and dedication to rewarding its investors.
The company's robust financial health is further evidenced by its profitability. InvestingPro data shows that Synchrony has been profitable over the last twelve months, with a notable revenue of $9,007 million and a strong operating income margin of 49.41%. This solid performance is reflected in the stock's valuation, with a P/E ratio of 7.15, which an InvestingPro Tip suggests is low relative to near-term earnings growth.
Investors may find Synchrony's stock particularly attractive given its recent market performance. The stock has shown a strong return over the last month and is trading near its 52-week high, with a one-year price total return of an impressive 106.34%. These metrics indicate positive market sentiment and potential for continued growth.
For those interested in a deeper analysis, InvestingPro offers additional insights with 11 more tips available for Synchrony Financial, providing a comprehensive view of the company's financial landscape and market position.
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