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Why Janus Henderson Group plc (JHG) is a Top Dividend Stock for Your Portfolio
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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.
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 18.58% so far this year. The company is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.94%. This compares to the Financial - Investment Management industry's yield of 1.55% and the S&P 500's yield of 1.34%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 5.6% from last year. Janus Henderson Group plc has increased its dividend 3 times on a year-over-year basis over the last 5 years 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%. This means 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
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. 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, JHG 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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Why Janus Henderson Group plc (JHG) is a Top Dividend Stock for Your Portfolio
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.
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 18.58% so far this year. The company is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.94%. This compares to the Financial - Investment Management industry's yield of 1.55% and the S&P 500's yield of 1.34%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 5.6% from last year. Janus Henderson Group plc has increased its dividend 3 times on a year-over-year basis over the last 5 years 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%. This means 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
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. 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, JHG 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).