Synchrony Announces Quarterly Common Stock Dividend of $0.25 Per Share

Rhea-AI Summary

Synchrony Financial (NYSE: SYF) has declared a quarterly cash dividend of $0.25 per share of common stock and a quarterly cash dividend on the outstanding shares of its 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. The dividends are payable on February 15, 2024, to holders of record at the close of business on February 5, 2024. The dividend for the Series A Preferred Stock is approximately $14.06 per share (equivalent to $0.351563 per outstanding depositary share).

Insights

Financial Analyst

The declaration of a quarterly cash dividend of $0.25 per share of common stock by Synchrony Financial is a tangible return on investment for shareholders and signals confidence by the company's Board of Directors in its financial stability and profitability. This action typically serves as a positive indicator to the market, often resulting in a favorable impact on the stock price. It's important to note that the dividend yield, calculated by dividing the annual dividend per share by the stock's price per share, can be an attractive metric for income-focused investors. The consistency and growth of dividends over time are key factors that analysts monitor as they may reflect the company's long-term financial health.

Market Research Analyst

From a market research perspective, Synchrony Financial's dividend declaration must be assessed in the context of the financial sector's current dividend trends. If the announced dividend aligns with or exceeds sector averages, it could enhance the company's competitiveness among its peers. Furthermore, the payment on preferred shares, particularly the 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, indicates a commitment to fulfilling obligations to preferred shareholders, who typically have priority over common shareholders in dividend distributions. The market's reception to this news will depend on how it compares with investor expectations and the dividend policies of similar companies.

Economist

An economist would assess the broader economic implications of such a dividend declaration. In a stable or growing economy, regular dividend payments may be sustainable and reflect broader economic strength. However, in a contracting economy, a company maintaining or increasing dividends might be seen as a robust entity capable of weathering economic downturns. It's also essential to consider the interest rate environment, as higher rates can increase the cost of borrowing and potentially impact a company's ability to pay dividends. In this light, Synchrony Financial's dividend announcement might be interpreted as a sign of strong operational performance and financial discipline.

Company also declares preferred stock dividend

STAMFORD, Conn., Jan. 24, 2024 /PRNewswire/ -- Synchrony Financial (NYSE: SYF) announced today that its Board of Directors declared a quarterly cash dividend of $0.25 per share of common stock, payable on February 15, 2024 to holders of record at the close of business on February 5, 2024.

The Board of Directors also declared a quarterly cash dividend on the outstanding shares of its 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock").  Each outstanding share of the Series A Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share of Series A Preferred Stock.  The dividend of approximately $14.06 per share (equivalent to $0.351563 per outstanding depositary share) is payable on February 15, 2024 to holders of record at the close of business on February 5, 2024.

About Synchrony

Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our "partners." We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer the right financing products to customers in their channel of choice. For more information, visit www.synchrony.com.

Contacts

Investor Relations:
Kathryn Miller
Synchrony
InvestorRelations@syf.com
(203) 585-6291

Media Relations:
Lisa Lanspery
Synchrony
lisa.lanspery@syf.com
(203) 585-6143

View original content to download multimedia:https://www.prnewswire.com/news-releases/synchrony-announces-quarterly-common-stock-dividend-of-0-25-per-share-302040907.html

SOURCE Synchrony Financial

FAQ

What is the dividend amount for Synchrony Financial's common stock?

The dividend amount for Synchrony Financial's common stock is $0.25 per share.

When are the dividends payable?

The dividends are payable on February 15, 2024, to holders of record at the close of business on February 5, 2024.

What is the dividend amount for Synchrony Financial's Series A Preferred Stock?

The dividend for Synchrony Financial's Series A Preferred Stock is approximately $14.06 per share (equivalent to $0.351563 per outstanding depositary share).