Synchrony Financial (NYSE:SYF) Raises Dividend to $0.34 Per Share

Synchrony Financial (NYSE:SYF) announced a quarterly dividend on Tuesday, July 21st. Shareholders 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) dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend 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 payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 4 consecutive 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 Trading Down 1.5%

Shares of Synchrony Financial stock traded down $1.13 on Tuesday, reaching $72.28. The company had a trading volume of 8,267,777 shares, compared to its average volume of 4,236,936. The firm has a market cap of $24.31 billion, a price-to-earnings ratio of 7.47, a P/E/G ratio of 0.69 and a beta of 1.32. 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 firm’s 50-day moving average price is $73.17 and its two-hundred day moving average price is $73.30. Synchrony Financial has a 1 year low of $63.08 and a 1 year high of $88.77.

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

Insider Activity

In other news, insider Jonathan S. Mothner sold 51,258 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $71.23, for a total value of $3,651,107.34. Following the transaction, the insider directly owned 132,664 shares in the company, valued at approximately $9,449,656.72. This represents a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.36% of the company’s stock.

Institutional Investors Weigh In On Synchrony Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SYF. Wedge Capital Management L L P NC boosted its position in Synchrony Financial by 4.4% in the 2nd quarter. Wedge Capital Management L L P NC now owns 495,316 shares of the financial services provider’s stock valued at $37,669,000 after buying an additional 20,959 shares during the period. Tema ETFs LLC increased its position in shares of Synchrony Financial by 9.0% during the second quarter. Tema ETFs LLC now owns 6,995 shares of the financial services provider’s stock worth $532,000 after acquiring an additional 580 shares during the period. Generali Investments Management Co LLC raised its stake in shares of Synchrony Financial by 206.0% during the second quarter. Generali Investments Management Co LLC now owns 3,987 shares of the financial services provider’s stock valued at $303,000 after acquiring an additional 2,684 shares in the last quarter. Handelsbanken Fonder AB raised its stake in shares of Synchrony Financial by 24.4% during the second quarter. Handelsbanken Fonder AB now owns 163,596 shares of the financial services provider’s stock valued at $12,441,000 after acquiring an additional 32,047 shares in the last quarter. Finally, Polianta Ltd boosted its holdings in shares of Synchrony Financial by 16.2% in the second quarter. Polianta Ltd now owns 24,400 shares of the financial services provider’s stock valued at $1,855,000 after purchasing an additional 3,400 shares during the period. Institutional investors own 96.48% of the company’s stock.

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.