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Victory Capital Rewards Investors With $200M Share Repurchase Plan

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Victory Capital Holdings, Inc.’s (VCTR - Free Report) board of directors announced its largest share repurchase program, authorizing up to $200 million in buybacks of its common stock through Dec. 31, 2026.

The new program follows the completion of a $100 million repurchase program announced in December 2023, completed ahead of its deadline of Dec. 31, 2025.

David Brown, chairman and CEO of VCTR, said, “This new repurchase program is the largest in our history and allows us to remain flexible and opportunistic with our capital.” He further added “As a growth company, our capital allocation strategy directly supports our strategy for increasing earnings and cash flow. In addition, with increasing cash flow, we can also reward shareholders by returning capital via share repurchases and dividends.”

VCTR’s Dividend Distribution Activities

In addition to the share repurchase program, Victory Capital also has a history of paying quarterly dividends. In November 2024, the company announced a dividend hike of 7% from its prior payout to 44 cents per share. The dividend will be paid out on Dec. 23 to shareholders of record as of Dec. 9, 2024. 

It has increased its dividend 12 times in the last five years. Based on the closing price of $62.59 as of Dec.19, 2024, the company’s dividend yield is currently 2.8% and its payout ratio is 33% of earnings.

Supported by its cash flow and earnings strength, Victory Capital is expected to continue with efficient capital distribution activities in the future. Through this, it will keep driving investors’ confidence in the stock.

VCTR’s Price Performance and Zacks Rank

Over the past six months, shares of Victory Capital have gained 29.4% compared with the industry’s 24.3% growth.

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Currently, VCTR carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps by Other Finance Firms

Earlier this month, Byline Bancorp, Inc. (BY - Free Report) announced a new share repurchase program. Under the buyback plan, BY will be able to repurchase up to 1.25 million shares, representing roughly 2.8% of its existing outstanding common stock. The repurchase plan will be in effect from Jan. 1, 2025, and will expire on Dec. 31, 2025.

Regional Management Corp.’s (RM - Free Report) board of directors authorized a stock repurchase program for its outstanding common stock worth up to $30 million. The authorization is effective immediately and will continue through Dec. 31, 2026. The repurchase program is part of RM’s strategy to manage its capital and enhance shareholders’ return.


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