Synchrony Financial said on July 20, 2023 that its board of directors declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Previously, the company paid $0.23 per share.
Shareholders of record as of July 31, 2023 will receive the payment on August 10, 2023.
At the current share price of $34.73 / share, the stock's dividend yield is 2.88%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.73%, the lowest has been 1.70%, and the highest has been 6.88%. The standard deviation of yields is 0.76 (n=236).
The current dividend yield is 0.20 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.16. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.05%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1435 funds or institutions reporting positions in Synchrony Financial. This is a decrease of 12 owner(s) or 0.83% in the last quarter. Average portfolio weight of all funds dedicated to SYF is 0.19%, a decrease of 3.80%. Total shares owned by institutions decreased in the last three months by 4.06% to 462,741K shares. 
The put/call ratio of SYF is 0.85, indicating a bullish outlook.
Analyst Price Forecast Suggests 8.15% Upside
As of July 6, 2023, the average one-year price target for Synchrony Financial is 37.56. The forecasts range from a low of 24.24 to a high of $53.55. The average price target represents an increase of 8.15% from its latest reported closing price of 34.73.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Synchrony Financial is 16,794MM, an increase of 118.16%. The projected annual non-GAAP EPS is 5.16.
What are Other Shareholders Doing?
Capital World Investors holds 45,088K shares representing 10.78% ownership of the company. No change in the last quarter.
ABALX - AMERICAN BALANCED FUND holds 22,145K shares representing 5.30% ownership of the company. No change in the last quarter.
Bank Of America holds 16,736K shares representing 4.00% ownership of the company. In it's prior filing, the firm reported owning 19,737K shares, representing a decrease of 17.93%. The firm decreased its portfolio allocation in SYF by 82.74% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 13,498K shares representing 3.23% ownership of the company. In it's prior filing, the firm reported owning 13,678K shares, representing a decrease of 1.33%. The firm decreased its portfolio allocation in SYF by 19.36% over the last quarter.
AMECX - INCOME FUND OF AMERICA holds 11,303K shares representing 2.70% ownership of the company. No change in the last quarter.
Synchrony Financial Background Information
(This description is provided by the company.)
Synchrony is a premier consumer financial services company. The Company delivers a wide range of specialized financing programs, as well as innovative consumer banking products, across key industries including digital, retail, home, auto, travel, health and pet. Synchrony enables its partners to grow sales and loyalty with consumers. It's one of the largest issuers of private label credit cards in the United States; it also offers co-branded products, installment loans and consumer financing products for small- and medium-sized businesses, as well as healthcare providers.
Additional reading:
- Second Amended and Restated Synchrony Financial Executive Severance Plan
- 2Q'23 FINANCIAL RESULTS July 18, 2023 Exhibit 99.3 2 Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results. No represe
- 2.1% Return on
- SYNCHRONY FINANCIAL
- Explanation of Non-GAAP Measures
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
