Discover Financial Services (DFS) to Increase Dividend to 20c, Buyback $2.4 Billion

March 14, 2013 5:28 PM EDT
Discover Financial Services (NYSE: DFS) today announced that its board of directors has approved a new share repurchase program authorizing the company to repurchase up to $2.4 billion of its common stock, and that it plans to increase its quarterly common stock dividend. These actions were part of the company’s capital plan, which was submitted to the Federal Reserve as part of the 2013 Capital Plan Review. The Federal Reserve notified Discover that it has no objections to the capital actions through March 31, 2014, set forth in the company’s capital plan.

The new share repurchase program expires on March 31, 2015, and may be terminated at any time. It replaces the prior $2 billion share repurchase program, which had approximately $600 million of remaining authorization as of March 14, 2013. Any share repurchases after March 31, 2014, would be subject to receiving Federal Reserve non-objection to the company’s 2014 capital plan.

The company’s capital plan includes an increase in the quarterly dividend from $0.14 to $0.20 per share of common stock in the second quarter of 2013. The board of directors will consider this increase in the company’s dividend at its April meeting.

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