NEW YORK - Voya Financial, Inc. (NYSE: NYSE:VOYA), a prominent financial services provider, has declared an increase in its quarterly common stock dividend. The announcement made today states that the dividend will rise by 12.5% to $0.45 per share for the third quarter of 2024, up from the previous $0.40 per share. Shareholders of record as of August 27, 2024, will be eligible for the dividend, which is scheduled for payment on September 26, 2024.
In addition to the hike in the common stock dividend, Voya's board has approved dividends on preferred stock. Shareholders of the Series A 7.758% fixed-rate reset non-cumulative preferred stock will receive a semi-annual dividend of $38.79 per share, while holders of Series B 5.35% fixed-rate reset non-cumulative preferred stock will receive a quarterly dividend of $13.3750 per share.
This equates to $0.334375 per depositary share for the Series B Preferred Stock. These dividends are also payable to shareholders on record as of August 27, 2024, with the payment date set for September 16, 2024.
Voya Financial, headquartered in New York, operates as a health, wealth, and investment company that serves over 15.2 million individual, workplace, and institutional clients. Its mission is to provide clear pathways to financial confidence and a more fulfilling life. The company employs approximately 9,000 individuals and owns Benefitfocus (NASDAQ:BNFT), a leading benefits administration provider that engages with more than 12 million employees in the U.S.
The company has been recognized for its workplace culture and ethical business practices, earning accolades such as a Great Place to Work certification, inclusion in the World's Most Ethical Companies by Ethisphere, the Bloomberg Gender-Equality Index, and the Disability Equality Index.
This dividend announcement is based on a press release statement from Voya Financial, Inc.
In other recent news, Voya Financial has made significant strides in its financial performance and strategic initiatives. Ahead of its quarterly earnings release, the company disclosed updated asset management data, revealing a diverse portfolio with assets totaling $336 billion as of June 30, 2024.
Voya's recent financial results have been promising, reporting a 23% year-over-year increase in adjusted operating earnings per share to $1.77 in the first quarter of 2024, keeping it on track to meet its full-year EPS target range of $8.25 to $8.45.
RBC Capital and Piper Sandler have maintained their positive ratings on Voya Financial, pointing to the company's robust free cash flow generating business model and potential for organic growth. The firms have also identified areas for improvement that could stabilize and increase earnings over time.
Voya Financial recently announced a new $500 million share repurchase authorization, demonstrating its commitment to returning $800 million of excess capital to shareholders within the year. Despite a slight decline in revenue yields in the Investment Management sector due to a mix shift, Voya's expansion into lower deductible levels in its stop-loss business is expected to contribute to sales growth. These are part of the recent developments for Voya Financial.
InvestingPro Insights
Voya Financial's recent announcement of a dividend increase is a testament to its commitment to shareholder returns, a trend that is supported by the company's strong financial performance. InvestingPro data reveals that Voya Financial has a market capitalization of $7.31 billion and is trading at a compelling price-to-earnings (P/E) ratio of 8.74 as of the last twelve months leading up to Q1 2024. This is indicative of the company's ability to generate earnings relative to its share price.
The company's commitment to its shareholders is further evidenced by its consistent dividend payments over the past 12 years, with an impressive 100% dividend growth in the last twelve months as of Q1 2024. Moreover, Voya has raised its dividend for five consecutive years, showcasing a stable and growing income stream for investors. These figures align with one of the InvestingPro Tips, which highlights the company's dedication to increasing shareholder value through dividends.
Moreover, Voya's financial health is robust, with liquid assets surpassing short-term obligations, providing a cushion for operational needs and potential investments. This is crucial for maintaining the dividends and potentially increasing them in the future.
For investors seeking detailed analysis and additional insights, Voya has several more InvestingPro Tips available, including the company's share buyback strategy and near-term earnings growth prospects. To explore these insights and make informed investment decisions, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
With 8 additional InvestingPro Tips available, investors can gain a comprehensive understanding of Voya's strategic positioning and future outlook. The company's next earnings date is set for July 30, 2024, which will provide further clarity on its financial trajectory and the sustainability of its dividend policy.
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