Synovus (SNV) Unveils Share-Buyback Plan: Worth A Look?
Zacks Investment Research | Jun 18, 2019 06:31AM ET
Synovus Financial (NYSE:SNV) continues to reward its shareholders through dividend hikes or additional share repurchases. The company’s board of directors recently increased the share-buyback plan with authorization by $325 million to repurchase shares worth $725 million for 2019. Notably, after repurchase of about $325 million worth common stock under the existing share-buyback program, Synovus had remaining $400 million of common stock available for repurchase during the ongoing year.
Such repurchases may be made in the open market, in privately negotiated transactions, or otherwise. The repurchase authorization does not obligate the company to repurchase any dollar amount or number of securities and may be suspended or discontinued any time.
Funding of the share repurchase is likely to include cash on hand, future cash flow from operations, borrowings and financings.
Notably, Synovus has also been paying quarterly dividends, along with regular hikes. Since December 2016, the company has raised its dividend thrice. Its dividend was last hiked this March by 20% to 30 cents from 25 cents per share.
Synovus has rallied 2.2%, year to date, compared with the Zacks Investment Research
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