Synchrony Financial (NYSE:SYF) Declares Quarterly Dividend of $0.34

Key Points

• Synchrony Financial declared a quarterly dividend of $0.34 per share, payable November 16 to shareholders of record November 5. The dividend implies $1.36 in annualized payments and a 1.9% yield.
• The dividend appears well covered, with a 15.6% payout ratio and a projected future payout ratio of 13.0%; the company has increased its dividend for four consecutive years.
• Synchrony reported quarterly EPS of $2.68, exceeding estimates of $2.42, while revenue of $3.82 billion was roughly in line with expectations. Institutional investors own 96.48% of the company’s shares.

Synchrony Financial (NYSE:SYF - Get Free Report) declared a quarterly dividend on Tuesday, October 20th. Stockholders of record on Thursday, November 5th will be given a dividend of $0.34 per share by the financial services provider on Monday, November 16th. This represents a $1.36 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, November 5th.

Synchrony Financial has raised its dividend payment by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 4 consecutive years. Synchrony Financial has a dividend payout ratio of 15.6% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Synchrony Financial to earn $10.44 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 13.0%.

Synchrony Financial Price Performance

SYF traded down $0.80 on Tuesday, reaching $73.44. 5,153,019 shares of the company's stock were exchanged, compared to its average volume of 3,911,097. The stock has a market cap of $23.90 billion, a PE ratio of 7.52, a P/E/G ratio of 0.86 and a beta of 1.35. Synchrony Financial has a twelve month low of $63.08 and a twelve month high of $88.77. The stock's fifty day moving average price is $75.88 and its 200-day moving average price is $74.60. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.22 and a quick ratio of 1.22.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings results on Tuesday, October 20th. The financial services provider reported $2.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.42 by $0.26. The business had revenue of $3.82 billion during the quarter, compared to analyst estimates of $3.81 billion. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%. During the same period in the prior year, the business earned $2.86 earnings per share. Sell-side analysts expect that Synchrony Financial will post 9.40 EPS for the current year.

Institutional Investors Weigh In On Synchrony Financial

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of Synchrony Financial in the second quarter valued at about $2,349,452,000. Bank of America Corp DE purchased a new stake in shares of Synchrony Financial during the 2nd quarter valued at about $1,122,961,000. Dimensional Fund Advisors LP raised its holdings in shares of Synchrony Financial by 6.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,039,753 shares of the financial services provider's stock valued at $410,760,000 after buying an additional 365,353 shares during the period. First Trust Advisors LP lifted its position in Synchrony Financial by 5.6% during the 1st quarter. First Trust Advisors LP now owns 5,338,110 shares of the financial services provider's stock worth $363,098,000 after acquiring an additional 281,451 shares in the last quarter. Finally, Assetmark Inc. lifted its position in Synchrony Financial by 0.9% during the 1st quarter. Assetmark Inc. now owns 4,338,604 shares of the financial services provider's stock worth $295,112,000 after acquiring an additional 37,114 shares in the last quarter. Hedge funds and other institutional investors own 96.48% of the company's stock.

About Synchrony Financial

Synchrony Financial NYSE: SYF is a consumer financial services company that provides private-label credit cards, co-branded credit cards and promotional financing programs. Its financing products are offered through retailers, manufacturers, healthcare providers and other businesses, helping consumers pay for purchases over time.

The company serves a range of industries, including digital commerce, home improvement, furniture, automotive, healthcare, jewelry, apparel, electronics and specialty retail.

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