STAMFORD, Conn. – Synchrony Financial (NYSE: NYSE:SYF), a prominent consumer financial services company, released its first-quarter financial results for the period ending March 31, 2024. The company also declared quarterly cash dividends for its common and preferred stock, and its Board of Directors approved an additional $1.0 billion share repurchase program.
The newly announced share buyback program, which commences this quarter, is set to run through June 30, 2025. This move raises Synchrony's total share repurchase authorization to roughly $1.3 billion, including the $300 million remaining from the previous program.
In terms of dividends, Synchrony declared a quarterly cash dividend of $0.25 per share of common stock, set to be paid on May 15, 2024, to stockholders of record as of May 6, 2024. Dividends were also declared for holders of its 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and 8.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B.
The dividends for Series A and Series B preferred stock are approximately $14.06 and $18.79 per share, respectively, which translates to $0.351563 and $0.469792 per outstanding depositary share. These are also payable on May 15 to shareholders of record on May 6.
Synchrony's President and Chief Executive Officer, Brian Doubles, and Executive Vice President and Chief Financial Officer, Brian Wenzel Sr., are scheduled to host a conference call today at 8:00 AM ET to review the financial results and discuss the outlook for certain business drivers. Interested parties can access the call through an audio webcast on the investor relations section of Synchrony's website.
Synchrony is known for delivering a wide array of digitally-enabled financial products across various industries, including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet, and more. The company partners with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers.
This article is based on a press release statement from Synchrony Financial.
InvestingPro Insights
Synchrony Financial (NYSE: SYF) has been proactive in enhancing shareholder value, as reflected by the newly announced share repurchase program. This aligns with an InvestingPro Tip indicating that management has been aggressively buying back shares. The recent buyback initiative demonstrates the company's commitment to returning capital to its shareholders and confidence in its financial stability.
Investors should note that Synchrony has been able to maintain dividend payments for 9 consecutive years, a testament to its consistent performance and dedication to shareholder returns. This is particularly noteworthy for income-focused investors who value dividend reliability.
From a performance standpoint, Synchrony has seen a significant return over the last week, with a 1 Week Price Total Return of 8.01%. Over a longer horizon, the company has experienced a large price uptick over the last six months, boasting a 59.02% return, which could signify strong investor confidence in the company's prospects.
InvestingPro Data highlights Synchrony's robust financial metrics, with a Market Cap of $17.44B USD and a Price/Earnings (P/E) Ratio of 8.25, which drops to an even more attractive 7.13 when adjusted for the last twelve months as of Q4 2023. The company's Operating Income Margin for the same period stands at an impressive 42.22%, showcasing its operational efficiency.
For investors seeking further analysis and additional InvestingPro Tips, there are 9 more tips available for Synchrony Financial, which can be accessed through the dedicated section on Investing.com. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain deeper insights into SYF's financial health and future prospects.
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