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Synchrony Financial (SYF) Hikes Quarterly Dividend Payout by 9%
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Synchrony Financial’s (SYF - Free Report) board of directors approved a 9% hike in the quarterly dividend to boost shareholder value. The latest hike takes the company’s quarterly payout to 25 cents per share from the prior payout of 23 cents.
The increased dividend will be paid on Aug 10, 2023, to shareholders of record as on Jul 31, 2023. Based on the stock’s Jul 21 closing price of $34.67, the new dividend reflects a 2.7% yield, which is higher than the industry’s yield of 2.2% and the S&P 500’s 1.4%.
SYF’s measures to reward shareholders through dividends and share buybacks are noteworthy. Due to its solid capital position, the company returned $399 million to shareholders through share buybacks of $300 million and dividends of $99 million in the second quarter of 2023. Further, the management approved a new share repurchase authorization of $1 billion at the end of June 2023.
As of Jun 30, 2023, it had cash and equivalents of $12.7 billion, which increased 23.4% from 2022-end. The company’s balance sheet strength enables it to take shareholder value-boosting moves. Also, SYF’s return on equity, a profitability measure of how prudently the company is utilizing its shareholders’ funds, stands at 19.8%, higher than the industry’s average of 15.9%.
Synchrony has a favorable history of capital generation, supported by its robust business model. It expects total loan receivables growth to be more than 10% for 2023. Moreover, the company’s focus on expanding its suite of solutions to buy now pay later products should boost its top line and cash-generating capabilities in the future. Synchrony’s cash flow from operating activities for six months ended Jun 30, 2023, increased 18.1% year over year, implying strong cash flow quality of the company.
Price Performance
Shares of Synchrony Financial have gained 19% in the past three months compared with the industry’s growth of 11.1%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Synchrony Financial currently carries a Zacks Rank #3 (Hold).
WisdomTree’s bottom line outpaced estimates in one of the trailing four quarters, met twice and missed once. The average of earnings surprises is 6.9%.
The Zacks Consensus Estimate for WT’s 2023 earnings indicates a 46.2% rise, while the same for revenues suggests 15.7% growth from the respective prior-year reported figures.
The bottom line of Moody’s Corporation outpaced estimates in two of the trailing four quarters, while it missed twice, the average surprise being 7.3%.
The Zacks Consensus Estimate for MCO’s 2023 earnings per share is pegged at $9.88, while the same for revenues is pegged at $5.9 billion for 2023. The consensus mark for MCO’s 2023 earnings has moved 0.8% north in the past 30 days.
The bottom line of StoneX Group outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 20.5%. The consensus mark for SNEX’s 2023 earnings has moved 0.8% north in the past 30 days.
The Zacks Consensus Estimate for SNEX’s 2023 earnings indicates a 3.4% rise, while the same for revenues suggests 38.7% growth from the respective prior-year reported figures.
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Synchrony Financial (SYF) Hikes Quarterly Dividend Payout by 9%
Synchrony Financial’s (SYF - Free Report) board of directors approved a 9% hike in the quarterly dividend to boost shareholder value. The latest hike takes the company’s quarterly payout to 25 cents per share from the prior payout of 23 cents.
The increased dividend will be paid on Aug 10, 2023, to shareholders of record as on Jul 31, 2023. Based on the stock’s Jul 21 closing price of $34.67, the new dividend reflects a 2.7% yield, which is higher than the industry’s yield of 2.2% and the S&P 500’s 1.4%.
SYF’s measures to reward shareholders through dividends and share buybacks are noteworthy. Due to its solid capital position, the company returned $399 million to shareholders through share buybacks of $300 million and dividends of $99 million in the second quarter of 2023. Further, the management approved a new share repurchase authorization of $1 billion at the end of June 2023.
As of Jun 30, 2023, it had cash and equivalents of $12.7 billion, which increased 23.4% from 2022-end. The company’s balance sheet strength enables it to take shareholder value-boosting moves. Also, SYF’s return on equity, a profitability measure of how prudently the company is utilizing its shareholders’ funds, stands at 19.8%, higher than the industry’s average of 15.9%.
Synchrony has a favorable history of capital generation, supported by its robust business model. It expects total loan receivables growth to be more than 10% for 2023. Moreover, the company’s focus on expanding its suite of solutions to buy now pay later products should boost its top line and cash-generating capabilities in the future. Synchrony’s cash flow from operating activities for six months ended Jun 30, 2023, increased 18.1% year over year, implying strong cash flow quality of the company.
Price Performance
Shares of Synchrony Financial have gained 19% in the past three months compared with the industry’s growth of 11.1%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Synchrony Financial currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Financial – Miscellaneous Space are WisdomTree, Inc. (WT - Free Report) , Moody's Corporation (MCO - Free Report) and StoneX Group Inc. (SNEX - Free Report) . Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WisdomTree’s bottom line outpaced estimates in one of the trailing four quarters, met twice and missed once. The average of earnings surprises is 6.9%.
The Zacks Consensus Estimate for WT’s 2023 earnings indicates a 46.2% rise, while the same for revenues suggests 15.7% growth from the respective prior-year reported figures.
The bottom line of Moody’s Corporation outpaced estimates in two of the trailing four quarters, while it missed twice, the average surprise being 7.3%.
The Zacks Consensus Estimate for MCO’s 2023 earnings per share is pegged at $9.88, while the same for revenues is pegged at $5.9 billion for 2023. The consensus mark for MCO’s 2023 earnings has moved 0.8% north in the past 30 days.
The bottom line of StoneX Group outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 20.5%. The consensus mark for SNEX’s 2023 earnings has moved 0.8% north in the past 30 days.
The Zacks Consensus Estimate for SNEX’s 2023 earnings indicates a 3.4% rise, while the same for revenues suggests 38.7% growth from the respective prior-year reported figures.