Yahoo Finance Synovus (SNV) Rewards Investors With 11.8% Dividend Hike
Synovus Financial Corp. SNV declared a quarterly cash dividend of 38 cents per share, marking a 11.8% increase from the prior payout. The dividend will be paid out on Apr 3 to shareholders of record as of Mar 16.
Considering the last day’s closing price of $40.47, Synovus’s current dividend yield is 3.76%, which is significantly impressive compared with the industry average of 2.56%. The yield, representing a steady income stream, attracts investors.
Prior to this, SNV hiked its dividend by 3% to 34 cents per share in Mach 2022. We believe such disbursements highlight the company’s operational strength and commitment to enhance shareholders’ wealth.
Apart from regular dividend increases, Synovus has a share repurchase program in place. In January 2022, the company authorized share repurchases up to $300 million for 2022 and during the year, it repurchased shares worth $13 million. Additionally, on Jan 18, SNV authorized share repurchases up to $300 million for 2023.
The management expects to maintain CET1 ratio within the range of 9.25-9.75% for the year ended 2023. This reflects capital strength of the company which is expected to support SNV’s efficient capital deployment activities. By carrying out the same, it will keep enhancing shareholders’ value.
The company made significant progress on its "Synovus Forward" initiative. The two-year initiative surpassed the $175 million run rate goal in the fourth quarter of 2022. Despite the completion of this initiative, emphasis on expense control and efficient revenue growth have been engrained in the company’s culture. These initiatives along with Synovus’s focus on organic growth strategy is expected to support its financials.
In the past six months, shares of SNV have gained 2.7% against the 0.2% decline of the industry it belongs to.
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SNV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dividend Hikes by Other Banks
Bank OZK OZK announced a cash dividend of 34 cents per share, marking a 3.03% increase from its prior payout. The dividend was paid out on Jan 24 to shareholders of record as of Jan 17.
This represents the 50th consecutive quarter of dividend hike by Bank OZK. Prior to this, OZK hiked its dividend by 3.1% to 33 cents per share in October 2022.
Washington Federal WAFD has announced a quarterly cash dividend of 25 cents per share, reflecting a rise of 4.2% from the prior payout. The dividend will be paid out on Mar 10 to shareholders of record as of Feb 24.
Prior to the current hike, the company increased its dividend by 4.2% to 24 cents per share in January 2022. WAFD raised its quarterly dividend seven times in the last five years. Also, it has a five-year annualized dividend growth of 7.6%. Currently, the company's payout ratio is 25% of earnings.
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Synovus Financial Corp. (SNV) : Free Stock Analysis Report
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