Synchrony Financial (NYSE:SYF) Declares Dividend Increase - $0.34 Per Share

Key Points

• Synchrony Financial declared a quarterly dividend of $0.34 per share, up 13.3% from the prior $0.30 payment. Shareholders of record on August 5 will be paid on August 17, and the dividend implies a 1.9% yield.
• The company’s payout looks well covered, with a 13.8% payout ratio and analysts expecting earnings of $10.35 per share next year. That would keep the annual dividend of $1.20 per share comfortably supported.
• Synchrony also posted strong quarterly results, earning $2.59 per share versus the $2.13 consensus estimate, while analysts remain constructive overall with a Moderate Buy rating and an average price target of $87.32.

Synchrony Financial (NYSE:SYF - Get Free Report) declared a quarterly dividend on Tuesday, July 21st. Stockholders of record on Wednesday, August 5th will be paid a dividend of 0.34 per share by the financial services provider on Monday, August 17th. This represents a c) annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Wednesday, August 5th. This is a 13.3% increase from Synchrony Financial's previous quarterly dividend of $0.30.

Synchrony Financial has raised its dividend by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 4 years. Synchrony Financial has a payout ratio of 13.8% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Synchrony Financial to earn $10.35 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 11.6%.

Synchrony Financial Stock Performance

Shares of SYF traded down $1.13 on Tuesday, reaching $72.28. The company's stock had a trading volume of 8,267,777 shares, compared to its average volume of 4,236,936. The stock's 50 day simple moving average is $73.17 and its two-hundred day simple moving average is $73.30. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a market capitalization of $24.31 billion, a P/E ratio of 7.47, a PEG ratio of 0.69 and a beta of 1.32. Synchrony Financial has a 12-month low of $63.08 and a 12-month high of $88.77.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share for the quarter, topping the consensus estimate of $2.13 by $0.46. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. During the same period in the prior year, the firm earned $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. Research analysts forecast that Synchrony Financial will post 9.34 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have commented on SYF shares. TD Cowen upped their price target on Synchrony Financial from $89.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, July 7th. Barclays raised their target price on shares of Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. Robert W. Baird increased their price objective on shares of Synchrony Financial from $83.00 to $86.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 22nd. Loop Capital started coverage on shares of Synchrony Financial in a research note on Friday, May 22nd. They set a "hold" rating and a $81.00 target price on the stock. Finally, BTIG Research downgraded shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a report on Wednesday, April 22nd. Twelve analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Synchrony Financial currently has a consensus rating of "Moderate Buy" and an average target price of $87.32.

About Synchrony Financial

Synchrony Financial NYSE: SYF is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants' checkout experiences.

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