Synchrony Financial (SYF) to Issue Quarterly Dividend of $0.25 on August 15th

Synchrony Financial (NYSE:SYF) announced a quarterly dividend on Tuesday, July 23rd, RTT News reports. Stockholders of record on Monday, August 5th will be given a dividend of 0.25 per share by the financial services provider on Thursday, August 15th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.22%. The ex-dividend date is Monday, August 5th.

Synchrony Financial has increased its dividend payment by an average of 2.9% per year over the last three years. Synchrony Financial has a dividend payout ratio of 17.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Synchrony Financial to earn $6.02 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 16.6%.

Synchrony Financial Stock Performance

NYSE SYF opened at $44.99 on Friday. Synchrony Financial has a 52-week low of $27.30 and a 52-week high of $52.67. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.23 and a current ratio of 1.23. The company has a market capitalization of $17.78 billion, a P/E ratio of 6.45, a P/E/G ratio of 1.14 and a beta of 1.63. The company has a fifty day moving average of $46.54 and a 200-day moving average of $43.24.

Synchrony Financial (NYSE:SYF) last posted its quarterly earnings data on Wednesday, July 17th. The financial services provider reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.35 by $0.20. Synchrony Financial had a net margin of 13.52% and a return on equity of 16.06%. The company had revenue of $5.58 billion during the quarter, compared to the consensus estimate of $4.44 billion. During the same period in the previous year, the firm posted $1.32 EPS. As a group, equities research analysts predict that Synchrony Financial will post 5.79 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have weighed in on SYF. Morgan Stanley reissued an “underweight” rating and issued a $30.00 price target on shares of Synchrony Financial in a research note on Wednesday, June 12th. JPMorgan Chase & Co. boosted their price target on shares of Synchrony Financial from $46.00 to $52.00 and gave the stock a “neutral” rating in a research note on Monday, July 8th. Royal Bank of Canada boosted their price objective on shares of Synchrony Financial from $50.00 to $55.00 and gave the company a “sector perform” rating in a research report on Thursday, July 18th. BTIG Research began coverage on shares of Synchrony Financial in a research report on Friday, June 7th. They issued a “buy” rating and a $60.00 price objective on the stock. Finally, JMP Securities boosted their price objective on shares of Synchrony Financial from $49.00 to $60.00 and gave the company a “market outperform” rating in a research report on Tuesday, July 16th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $50.50.

Synchrony Financial announced that its board has authorized a stock repurchase program on Wednesday, April 24th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the financial services provider to repurchase up to 5.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Synchrony Financial Company Profile

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The company also offers private label credit cards, dual co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts, and sweep and affinity deposits, as well as accepts deposits through third-party securities brokerage firms.