Synchrony Announces $1.6B Share Repurchase Program and Quarterly Dividend

Synchrony Financial today announced a $1.6 billion share buyback program starting this quarter and ending December 31, 2021.

Synchrony Financial (SYF) also declared a quarterly dividend of $0.22 per share. The ex-dividend date is February 5, 2021 and the dividend will be payable on February 16, 2021.

In addition, the board of directors declared $14.06 preferred stock dividend also payable on February 16.

Each outstanding 5.625% Fixed Rate, Non-Cumulative Perpetual Preferred Share is represented by depository shares that signify 1/40th of a preferred share. The preferred stock dividend equates to approximately $0.35 per outstanding depository share. (See SYF stock analysis on TipRanks)

JMP Securities analyst David Scharf reiterated his Buy rating on SYF yesterday and raised his price target to $43 from $36 (22% upside potential).

Scharf feels that Synchrony’s new Verizon and Venmo cards are better positioned for growth than Alliance Data Systems and believes Synchrony’s portfolio is more resilient based on retail sales data reported by Synchrony’s publicly traded clients.

Meanwhile, analysts on the Street agree with Scharf, with a Strong Buy rating based on 9 Buys and 1 Hold. The average price target of $43.80 implies that SYF shares possess upside potential of around 24% over the next 12 months.

Synchrony scores a perfect 10 from TipRanks’ Smart Score system, which implies that SYF shares have a strong chance of outperforming the market.

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