Voya Raises Dividend 21% and Adds $500 Million to Buyback After Q3
Voya Financial raised its quarterly dividend 21% to $0.57 a share and added $500 million to its buyback authorization on Monday, as the retirement and investment-management company reported third-quarter adjusted operating earnings of $2.60 per diluted share, up 6.1% from $2.45 a year earlier.
After-tax adjusted operating earnings were $240 million, compared with $239 million, according to its 8-K. Per-share results also benefited from a lower share count after continued repurchases, the company said. The quarter absorbed an estimated $25 million of pre-tax severance expense tied to cost-cutting, the company said.
Net income available to common shareholders rose to $193 million, or $2.09 per diluted share, from $176 million, or $1.80, a 16.1% per-share gain. Voya attributed the increase mainly to lower losses on businesses it has exited and higher adjusted operating earnings.
Dividend and buyback boost
The new $0.57 quarterly dividend begins in the fourth quarter of 2026. The extra $500 million of repurchase authority comes on top of an estimated $163 million that remained at Sept. 30, the company said.
Voya generated an estimated $225 million of excess capital in the quarter, more than 90% of after-tax adjusted operating earnings, and returned an estimated $150 million through dividends and buybacks, the company said. It also made the final $20 million payment tied to its OneAmerica transaction.
"Voya delivered a strong third quarter, reflecting the improvement we expected in the second half and continued execution across our businesses," Chief Executive Heather Lavallee said. "The increase in our dividend and share repurchase authorization underscores our confidence in Voya's ability to deliver sustained earnings growth and cash generation."
Segment results
Retirement pre-tax adjusted operating earnings rose to $266 million from $261 million. Net revenue over the trailing 12 months grew 6%, though the adjusted operating margin narrowed to 37.8% from 39.8%, partly on lower alternative investment income. Client assets climbed 12% to $878 billion, and participants reached 10.3 million.
Investment Management earned $58 million, down from $62 million on lower investment capital income. It drew $1.4 billion of net inflows, excluding divested businesses and a sub-advisor transition, and ended with $363 billion of assets under management.
Employee Benefits earnings increased to $51 million from $47 million, including a $12 million favorable assumption update. Its trailing 12-month margin widened to 11.4% from 6.0% as the aggregate loss ratio improved to 74% from 78%. Corporate losses widened to $87 million from $80 million.
By the numbers
- $2.60 adjusted operating EPS, up 6.1%
- $2.09 GAAP EPS, versus $1.80
- $0.57 new quarterly dividend, up 21%
- $500 million added to the buyback authorization
- $878 billion of Retirement client assets
Sources
- Voya Financial Form 8-K with third-quarter 2026 results, filed Nov. 2, 2026 (accession 0001535929-26-000185)
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