Discover Board Approves Repurchase of $1.1B of Common Stock

Discover Board Approves Repurchase of $1.1B of Common Stock

Discover Financial Services Board of Directors Approves Repurchase of up to $1.1 Billion of Common Stock, Declares Common and Preferred Stock Dividends

RIVERWOODS, IL (STL.News) Discover Financial Services (NYSE: DFS) announced Tuesday that its Board of Directors has approved a new $1.1 billion share repurchase program, having suspended share repurchases since March 2020 in response to the economic recession.  The new program expires on December 31, 2021, and can be terminated at any time.

The company expects to repurchase shares from time to time subject to the company’s repurchase program limit, its capital plan, market conditions and other factors, including legal and regulatory restrictions and required approvals, if any.  The timing and exact amount of repurchases under the new repurchase program will be based on market conditions and other factors.

The Board of Directors of Discover Financial Services 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 April 30, 2021, to the holders of record at the close of business on April 15, 2021.

The Board of Directors of Discover Financial Services declared a semi-annual cash dividend (which includes a one-time payment for a long first dividend period) on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, in the amount of $4,611 per share.  The dividend equals $46.11 per depositary share (includes $30.63 semi-annual dividend plus $15.48 to account for the long first dividend period), each representing 1/100th interest in a share of the Series D Preferred Stock.  The dividend will be payable on March 23, 2021, to the holders of record at the close of business on March 8, 2021.

The Board of Directors of Discover Financial Services declared a quarterly cash dividend of $0.44 per share of common stock payable on March 4, 2021, to holders of record at the close of business on February 18, 2021.

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