Synchrony Financial dividend: amount and cash coverage
MyStockButler's October 2026 analysis: Synchrony Financial pays a current annualized dividend of $1.36 per share. Operating cash less net lending left $5,245 million before other investing needs, so that is not a standard measure of distributable cash.
How much does Synchrony Financial pay in dividends?
Dividends rise gradually in the base case from $1.52 in 2027 to $1.84 in 2029. The bear holds the current $1.36 annualized rate before cutting to $1.20. The bull reaches $2.24, supported by the history of annual increases and a 12.4% 2025 payout ratio.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Book value | 13,984 (14,084 / 15,284) | 13,914 (14,334 / 16,114) | 14,624 (15,484 / 17,324) |
| Dividends per share | 1.52 (1.36 / 1.60) | 1.68 (1.20 / 1.92) | 1.84 (1.20 / 2.24) |
| Price to book value | 1.50 (1.20 / 1.75) | 1.50 (1.05 / 1.90) | 1.55 (0.95 / 2.00) |
Does Synchrony Financial's cash cover its dividend?
Net lending used $4,606 million in 2025, even though period-end net loans declined. New lending, repayments and charge-offs move through cash flow differently from the ending balance. Operating cash less net lending left $5,245 million before other investing needs, not a standard measure of distributable cash.
Finally, cash location matters. Consolidated cash and equivalents ended 2025 at $14,973 million, while the parent separately held $2,465 million. The regulated bank has funding and capital requirements before money can move to common shareholders. Synchrony’s numbers therefore describe a lender with improving credit and meaningful cash generation, but the real test remains how much of that cash can safely become durable shareholder returns.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Net income | 3,552 | 3,499 | 2,238 | 3,016 | 4,221 |
| − Dividends declared on common shares | 427 | 398 | 406 | 434 | 500 |
| − Share buybacks | 2,913 | 1,000 | 1,100 | 3,318 | 2,875 |
| = Kept to grow and build capital | 129 | 2,029 | 690 | 804 |
What this means. The payout percentages differ because one includes share buybacks and dividends, while the other counts only dividends.
What could change Synchrony Financial's dividend?
The weighted forecast is nearly flat by October 2027 and higher by October 2029, hinging on durable earnings from maturing loans and buybacks that remain within capital capacity. Management’s full-year 2026 outlook calls for $9.50 diluted EPS and a net charge-off rate below 5.5%. That outlook puts RSA, the partner cost, at 4.0%–4.5% of average loan receivables. Its double-digit EPS growth framework for 2027 depends on loan growth, maturing portfolios, operating leverage and buybacks; it is not formal guidance.
What is Synchrony Financial's dividend yield against its price?
The dividend yield is 1.9%, while Synchrony repurchased $1.1 billion of shares in the third quarter. Deposits and borrowings fund loans, so industrial-company measures such as “net debt” do not capture this balance sheet well.
| Today (Oct 21, 2026) | |
|---|---|
| Share price | 73.36 |
| Market value (calculated) | 22,844 |
| Price to book (calculated) | 1.5x |
| Dividend yield (calculated) | 1.9% |
What this means. The share price shown for October 21 is actually the closing price from October 20.