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Why Janus Henderson Group plc (JHG) is a Great Dividend Stock Right Now
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the 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.
Janus Henderson Group plc in Focus
Headquartered in London, Janus Henderson Group plc (JHG - Free Report) is a Finance stock that has seen a price change of 13.32% so far this year. The company is paying out a dividend of $0.36 per share at the moment, with a dividend yield of 4.13% compared to the Financial - Investment Management industry's yield of 1.29% and the S&P 500's yield of 1.29%.
In terms of dividend growth, the company's current annualized dividend of $1.52 is up 5.6% from last year. Over the last 5 years, Janus Henderson Group plc has increased its dividend 3 times on a year-over-year basis for an average annual increase of 11.12%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Janus Henderson Group plc's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
JHG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $3.70 per share, representing a year-over-year earnings growth rate of 22.92%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, JHG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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Why Janus Henderson Group plc (JHG) is a Great Dividend Stock Right Now
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the 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.
Janus Henderson Group plc in Focus
Headquartered in London, Janus Henderson Group plc (JHG - Free Report) is a Finance stock that has seen a price change of 13.32% so far this year. The company is paying out a dividend of $0.36 per share at the moment, with a dividend yield of 4.13% compared to the Financial - Investment Management industry's yield of 1.29% and the S&P 500's yield of 1.29%.
In terms of dividend growth, the company's current annualized dividend of $1.52 is up 5.6% from last year. Over the last 5 years, Janus Henderson Group plc has increased its dividend 3 times on a year-over-year basis for an average annual increase of 11.12%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Janus Henderson Group plc's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
JHG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $3.70 per share, representing a year-over-year earnings growth rate of 22.92%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, JHG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).