Synchrony Reports First Quarter 2025 Results; Company also Announces Quarterly Common Stock Dividend of $0.30 Per Share and Approval of a $2.5 Billion Share Repurchase Program

Rhea-AI Summary

Synchrony Financial (NYSE: SYF) has announced its first quarter 2025 results and several key shareholder returns initiatives. The company's Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, representing a 20% increase from the previous dividend. The dividend will be paid on May 15, 2025, to stockholders of record as of May 5, 2025.

Additionally, the Board approved a new $2.5 billion share repurchase program starting in Q2 2025 through June 30, 2026, following the completion of its previous buyback program. The company also declared quarterly dividends for its Series A and Series B Preferred Stock, with payments of approximately $14.06 and $20.63 per share respectively.

Positive

• Announced $2.5 billion share repurchase program through June 2026
• 20% increase in quarterly dividend to $0.30 per share
• Successfully completed previous share repurchase program

Negative

• None.

Insights

Financial Analyst

Synchrony announces substantial 20% dividend increase and $2.5B share repurchase program, significantly enhancing shareholder returns.

Synchrony Financial's Q1 2025 announcement reveals multiple shareholder-friendly capital return initiatives that deserve attention. The 20% increase in quarterly common stock dividend to $0.30 per share represents a meaningful enhancement to shareholder returns and regular income.

More substantially, the $2.5 billion share repurchase program approved by the Board is particularly significant. This authorization represents approximately 13.2% of Synchrony's current $18.9 billion market capitalization - a considerable percentage that could materially reduce the outstanding share count through its duration ending June 2026.

The company has demonstrated consistent execution of capital return strategies, noting the completion of its previous share repurchase program as of March 31, 2025. While specific Q1 financial metrics aren't detailed in this release, these capital allocation decisions represent concrete value creation initiatives for shareholders.

The preferred stock dividend declarations ($14.06 per share for Series A and $20.63 per share for Series B) complete the comprehensive capital return picture across Synchrony's capital structure. Companies typically implement such robust return programs when they generate sufficient cash flow to fund both business operations and shareholder returns.

The magnitude of both the percentage dividend increase and the share repurchase authorization relative to market cap represents a quantifiably positive development for Synchrony shareholders.

Company also declares preferred stock dividends

STAMFORD, Conn., April 22, 2025 /PRNewswire/ -- Synchrony Financial (NYSE: SYF) today announced first quarter 2025 results for the period ending March 31, 2025. The Earnings Release and presentation can be found on the company's Investor Relations website at https://investors.synchrony.com/financial-information/financial-results.

Today at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the Investor Relations website at www.investors.synchrony.com, under Events and Presentations. A replay will also be available on the website.

The Company also announced that its Board of Directors (the "Board") declared a quarterly cash dividend of $0.30 per share of common stock, a 20% increase to the quarterly common stock dividend. The dividend is payable on May 15, 2025 to holders of record at the close of business on May 5, 2025. The Board also declared a quarterly cash dividend on the outstanding shares of its 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock") and 8.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the "Series B Preferred Stock"). Each outstanding share of the Series A Preferred Stock and Series B Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share. The dividends of approximately $14.06 per share on the Series A Preferred Stock (equivalent to $0.351563 per outstanding depositary share) and approximately $20.63 per share on the Series B Preferred Stock (equivalent to $0.515625 per outstanding depositary share) are payable on May 15, 2025 to holders of record at the close of business on May 5, 2025.

Additionally, the Company announced that the Board approved a share repurchase program of up to $2.5 billion, commencing in the second quarter of 2025 through June 30, 2026. As of March 31, 2025, the Company had completed its prior share repurchase program.

About Synchrony
Synchrony (NYSE: SYF) is a leading consumer financing company at the heart of American commerce and opportunity. From health to home, auto to retail, our Synchrony products have been serving the needs of people and businesses for nearly 100 years. We provide responsible access to credit and banking products to support healthier financial lives for tens of millions of people, enabling them to access the things that matter to them. Additionally, through our innovative products and experiences, we support the growth and operations of some of the country's most respected brands, as well as more than 400,000 small and midsize businesses and health and wellness providers that Americans rely on. Synchrony is proud to be ranked as the country's #2 Best Company to Work For® by Fortune magazine and Great Place to Work®.  For more information, visit www.synchrony.com. 

Contact
Investor Relations
Kathryn Miller
(203) 585-6291
Kathryn.miller@syf.com

Media Relations
Tyler Allen
(551) 370-2902
Tyler.allen@syf.com

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SOURCE Synchrony Financial

FAQ

What is the size of Synchrony Financial's new share repurchase program announced in Q1 2025?

Synchrony Financial announced a $2.5 billion share repurchase program, which will commence in Q2 2025 and run through June 30, 2026.

How much did Synchrony (SYF) increase its quarterly dividend in Q1 2025?

Synchrony increased its quarterly cash dividend by 20% to $0.30 per share of common stock.

When will Synchrony's (SYF) new quarterly dividend be paid?

The dividend will be paid on May 15, 2025, to shareholders of record as of May 5, 2025.

What are the dividend rates for Synchrony's preferred stock shares?

Synchrony will pay approximately $14.06 per share for Series A Preferred Stock and $20.63 per share for Series B Preferred Stock.