Credit card debt can be a burden, but owning a credit card company’s stock can be quite rewarding.
On Thursday, Discover Financial Services’ (NYSE:DFS) board of directors approved a quarterly dividend of $0.30 per share. This represents a seven percent increase from its current quarterly payout of $0.28 per share. The new dividend is payable on August 18, 2016 to shareholders of record as of August 4. (Source: “Discover Financial Services Declares Quarterly Dividend for Preferred and Common Stock,” Discover Financial Services, July 14, 2016.)
After the increase, DFS stock has an annual dividend yield of 2.1%. The company also announced a new $2.5-billion share repurchase program. The new program will expire on October 31, 2017 and will replace the prior five-quarter, $2.2-billion program.