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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Silvercrest in Focus
Based in New York, Silvercrest (SAMG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 0.69%. Currently paying a dividend of $0.18 per share, the company has a dividend yield of 3.81%. In comparison, the Financial - Investment Management industry's yield is 3.02%, while the S&P 500's yield is 1.75%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.72 is up 2.9% from last year. Silvercrest has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 5.51%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, Silvercrest's payout ratio is 59%, which means it paid out 59% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for SAMG for this fiscal year. The Zacks Consensus Estimate for 2023 is $1.52 per share, representing a year-over-year earnings growth rate of 12.59%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, SAMG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Are You Looking for a High-Growth Dividend Stock?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Silvercrest in Focus
Based in New York, Silvercrest (SAMG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 0.69%. Currently paying a dividend of $0.18 per share, the company has a dividend yield of 3.81%. In comparison, the Financial - Investment Management industry's yield is 3.02%, while the S&P 500's yield is 1.75%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.72 is up 2.9% from last year. Silvercrest has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 5.51%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, Silvercrest's payout ratio is 59%, which means it paid out 59% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for SAMG for this fiscal year. The Zacks Consensus Estimate for 2023 is $1.52 per share, representing a year-over-year earnings growth rate of 12.59%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, SAMG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).