Market Overview

Discover Financial Services Declares Semi-Annual Dividend for Preferred and Quarterly Dividend for Common Stock

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Discover Financial Services (NYSE:DFS) announced today that its Board
of Directors has approved a new $3.0 billion share repurchase program
and increased the quarterly common stock dividend from $0.35 to $0.40
per share. The new share repurchase program expires on January 31, 2020,
and may be terminated at any time. This is a five quarter share
repurchase program and replaces the prior five-quarter, $2.75 billion
program. The company expects to make share repurchases from time to time
subject to the company's capital plan, market conditions and other
factors, including legal and regulatory restrictions and required
approvals.

The Board of Directors declared a quarterly cash dividend of $0.40 per
share of common stock payable on September 6, 2018, to holders of record
at the close of business on August 23, 2018.

The Board of Directors of Discover Financial Services also declared a
semi-annual cash dividend on its Fixed Rate Non-Cumulative Perpetual
Preferred Stock, Series C, in the amount of $2,750 per share. The
dividend equals $27.50 per depositary share, each representing 1/100th
interest in a share of the Series C Preferred Stock. The dividend will
be payable on October 30, 2018, to the holders of record at the close of
business on October 15, 2018.

About Discover

Discover Financial Services (NYSE:DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company issues
the Discover card, America's cash rewards pioneer, and offers private
student loans, personal loans, home equity loans, checking and savings
accounts and certificates of deposit through its direct banking
business. It operates the Discover Global Network comprised of Discover
Network, with millions of merchant and cash access locations; PULSE, one
of the nation's leading ATM/debit networks; and Diners Club
International, a global payments network with acceptance in 190
countries and territories. For more information, visit www.discover.com/company.

This press release contains forward-looking statements. You are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date on which they are made, which reflect
management's estimates, projections, expectations or beliefs at that
time, and which are subject to significant risks and uncertainties that
may cause actual results to differ materially. The amount and timing of
any future dividends and share repurchases are subject to the discretion
of the company's board of directors and will depend upon the company's
results of operations, financial condition, cash requirements, future
prospects, market conditions, capital requirements, applicable law and
regulations (including federal securities laws and federal banking
regulations) and other factors, and may be subject to regulatory
approval or conditions. Additional factors impacting dividends and share
repurchases can be found in "Business - Supervision and Regulation",
"Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the company's annual report on
Form 10-K for the year ended December 31, 2017, and under "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the company's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2018, which are filed with the SEC and available
at the SEC's website (www.sec.gov).
The Company does not undertake to update or revise forward-looking
statements as more information becomes available.

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