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Why Silvercrest (SAMG) is a Top Dividend Stock for Your Portfolio
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But 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 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Silvercrest in Focus
Headquartered in New York, Silvercrest (SAMG - Free Report) is a Finance stock that has seen a price change of 23.76% so far this year. The investment company is currently shelling out a dividend of $0.17 per share, with a dividend yield of 3.2%. This compares to the Financial - Investment Management industry's yield of 2.04% and the S&P 500's yield of 1.52%.
In terms of dividend growth, the company's current annualized dividend of $0.68 is up 3% from last year. In the past five-year period, Silvercrest has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.36%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Silvercrest's current payout ratio is 35%, meaning it paid out 35% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, SAMG expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $1.91 per share, with earnings expected to increase 1.06% from the year ago period.
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. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that SAMG is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Why Silvercrest (SAMG) is a Top Dividend Stock for Your Portfolio
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But 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 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Silvercrest in Focus
Headquartered in New York, Silvercrest (SAMG - Free Report) is a Finance stock that has seen a price change of 23.76% so far this year. The investment company is currently shelling out a dividend of $0.17 per share, with a dividend yield of 3.2%. This compares to the Financial - Investment Management industry's yield of 2.04% and the S&P 500's yield of 1.52%.
In terms of dividend growth, the company's current annualized dividend of $0.68 is up 3% from last year. In the past five-year period, Silvercrest has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.36%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Silvercrest's current payout ratio is 35%, meaning it paid out 35% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, SAMG expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $1.91 per share, with earnings expected to increase 1.06% from the year ago period.
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. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that SAMG is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).