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Virtus Investment (VRTS) Hikes Its Quarterly Dividend by 18%
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Virtus Investment Partners, Inc. (VRTS - Free Report) has announced a sequential hike in its quarterly dividend for the seventh consecutive year. The company declared a quarterly cash dividend of $2.25 per share, marking an increase of 18% from the prior payout. The dividend will be paid out on Nov 13 to shareholders of record as of Oct 31, 2024.
The company has increased its dividend seven times during the last five years. Before the recent hike, VRTS increased its dividend by 15% to $1.90 per share in August 2023. Currently, its payout ratio is 31% of earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Considering VRTS’ closing price of $206 on Aug 15, its dividend yield is currently pegged at 4.4%.
Apart from regular dividend payouts, the company also has a share repurchase program in place. In December 2010, the company’s board of directors authorized the repurchase of up to 5.7 million of its common shares. In the first half of 2024, the company repurchased 76,207 of its common shares. As of Jun 30, 2024, 0.53 million shares remained available under the authorization.
As of Jun 30, 2024, the company had a total cash and cash equivalents of $183 million, while its total debt was $247.6 million. The lower liquidity level keeps us apprehensive regarding the sustainability of its capital distribution activities in the long run.
In the past six months, shares of Virtus Investment have plunged 11.7% against the industry’s growth of 4.6%.
This week, Victory Capital Holdings, Inc. (VCTR - Free Report) announced a sequential increase in its quarterly dividend. The company declared a quarterly cash dividend of 41 cents per share, marking an increase of 11% from the prior payout. The dividend will be paid out on Sep 25 to shareholders of record as of Sep 10, 2024.
The company has increased its dividend 11 times during the last five years. Before the recent hike, VCTR increased its dividend by 5% to 34 cents per share in February 2024. Currently, its payout ratio is 31% of earnings.
State Street Corp. (STT - Free Report) recently hiked its quarterly cash dividend. The company declared a quarterly cash dividend of 76 cents per share, marking an increase of 10.1% from the prior payout. The dividend will be paid out on Oct 11 to shareholders of record as of Oct 1.
This hike is in line with the company’s previous announcement to increase its dividend post its stress test 2024 results. The results demonstrated that STT’s stress capital buffer was well below the 2.5% minimum while its common equity tier 1 ratio requirement was maintained at 8%. This reinforces the financial strength and resiliency of the company under adverse circumstances.
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Virtus Investment (VRTS) Hikes Its Quarterly Dividend by 18%
Virtus Investment Partners, Inc. (VRTS - Free Report) has announced a sequential hike in its quarterly dividend for the seventh consecutive year. The company declared a quarterly cash dividend of $2.25 per share, marking an increase of 18% from the prior payout. The dividend will be paid out on Nov 13 to shareholders of record as of Oct 31, 2024.
The company has increased its dividend seven times during the last five years. Before the recent hike, VRTS increased its dividend by 15% to $1.90 per share in August 2023. Currently, its payout ratio is 31% of earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Considering VRTS’ closing price of $206 on Aug 15, its dividend yield is currently pegged at 4.4%.
Apart from regular dividend payouts, the company also has a share repurchase program in place. In December 2010, the company’s board of directors authorized the repurchase of up to 5.7 million of its common shares. In the first half of 2024, the company repurchased 76,207 of its common shares. As of Jun 30, 2024, 0.53 million shares remained available under the authorization.
As of Jun 30, 2024, the company had a total cash and cash equivalents of $183 million, while its total debt was $247.6 million. The lower liquidity level keeps us apprehensive regarding the sustainability of its capital distribution activities in the long run.
In the past six months, shares of Virtus Investment have plunged 11.7% against the industry’s growth of 4.6%.
Image Source: Zacks Investment Research
VRTS currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Other Finance Firms Taking Similar Steps
This week, Victory Capital Holdings, Inc. (VCTR - Free Report) announced a sequential increase in its quarterly dividend. The company declared a quarterly cash dividend of 41 cents per share, marking an increase of 11% from the prior payout. The dividend will be paid out on Sep 25 to shareholders of record as of Sep 10, 2024.
The company has increased its dividend 11 times during the last five years. Before the recent hike, VCTR increased its dividend by 5% to 34 cents per share in February 2024. Currently, its payout ratio is 31% of earnings.
State Street Corp. (STT - Free Report) recently hiked its quarterly cash dividend. The company declared a quarterly cash dividend of 76 cents per share, marking an increase of 10.1% from the prior payout. The dividend will be paid out on Oct 11 to shareholders of record as of Oct 1.
This hike is in line with the company’s previous announcement to increase its dividend post its stress test 2024 results. The results demonstrated that STT’s stress capital buffer was well below the 2.5% minimum while its common equity tier 1 ratio requirement was maintained at 8%. This reinforces the financial strength and resiliency of the company under adverse circumstances.