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Is Artisan Partners (APAM) Worth a Look for its Dividend Yield?
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The Fed recently indicated the possibility of three rate cuts and higher chances of a soft landing of the U.S. economy. Hence, keeping an eye on fundamentally solid companies, which also have impressive dividend yields, will be wise now. One such company is Artisan Partners Asset Management Inc. (APAM - Free Report) .
APAM is an investment management firm focused on providing high-value-added, active investment strategies to clients globally. Its investment teams manage a broad range of U.S., non-U.S. and global investment strategies that are diversified by asset class, market cap and investment style.
APAM has been paying quarterly dividends on a regular basis and raising the same. In January 2024, the company’s board of directors declared a variable fourth-quarter 2023 dividend of 68 cents per share of Class A common stock and a special dividend of 34 cents per share. In the past five years, it has increased dividends 14 times.
Considering the last day’s closing price of $44.40 per share, Artisan Partners’ dividend yield currently stands at 6.13%. This is impressive compared with the industry’s average of 2.05%, in turn, attracting investors as it indicates a steady income stream.
Is Artisan Partners stock worth a look to earn a high dividend yield? Let’s check the company’s fundamentals to understand its risks and rewards for making a proper investment decision.
APAM pays a variable dividend, amounting to 80% of the cash generated each quarter. It also pays a special dividend.
Apart from regular quarterly dividend payouts, Artisan Partners’ total assets under management (AUM) have been witnessing improvements. Total AUM saw a five-year (2018-2023) compound annual growth rate (CAGR) of 9.3%. The company’s efforts to improve and add investment strategies have supported its AUM growth.
Going forward, an improvement in global equity and debt markets, along with stabilization of the economy, will likely support AUM, thus aiding top-line growth. Our estimate for total AUM suggests a three-year CAGR of 8% by 2026.
Artisan Partners witnessed a CAGR of 3.3% in net revenues over the last five years (ended 2023) with some volatility. The increase was mainly driven by a solid AUM balance. The company’s diverse product offerings and investment strategies continue to attract investors and are expected to support revenue growth in the upcoming period. We project total revenues to rise 11.2%, 8.5% and 7.5% in 2024, 2025 and 2026, respectively.
Artisan Partners maintains a decent balance sheet. As of Dec 31, 2023, the company had borrowings of around $199.3 million, which have been relatively stable over the past few quarters. Cash and cash equivalents, as of the same date, were $141 million, and it had $100 million in its revolving credit facility.
On the flip side, Artisan Partners’ bottom line continues to suffer from rising operating expenses. Also, volatile trends in net client cash flows pose a major concern.
Over the past year, shares of APAM have gained 43.8% compared with the industry‘s upside of 41.3%.
Image Source: Zacks Investment Research
Therefore, income investors must consider betting on this Zacks Rank #1 (Strong Buy) stock as it will likely help generate robust returns over time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Companies Offering Solid Dividends
Stocks like KeyCorp (KEY - Free Report) and Truist Financial (TFC - Free Report) are worth a look as these, too, have robust dividend yields.
Considering the last day’s closing price, KEY’s dividend yield currently stands at 5.44%. In the past three months, KEY shares have rallied 44.9%.
Based on the last day’s closing price, TFC’s dividend yield currently stands at 5.53%. In the past three months, TFC shares have gained 34.6%.
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Is Artisan Partners (APAM) Worth a Look for its Dividend Yield?
The Fed recently indicated the possibility of three rate cuts and higher chances of a soft landing of the U.S. economy. Hence, keeping an eye on fundamentally solid companies, which also have impressive dividend yields, will be wise now. One such company is Artisan Partners Asset Management Inc. (APAM - Free Report) .
APAM is an investment management firm focused on providing high-value-added, active investment strategies to clients globally. Its investment teams manage a broad range of U.S., non-U.S. and global investment strategies that are diversified by asset class, market cap and investment style.
APAM has been paying quarterly dividends on a regular basis and raising the same. In January 2024, the company’s board of directors declared a variable fourth-quarter 2023 dividend of 68 cents per share of Class A common stock and a special dividend of 34 cents per share. In the past five years, it has increased dividends 14 times.
Considering the last day’s closing price of $44.40 per share, Artisan Partners’ dividend yield currently stands at 6.13%. This is impressive compared with the industry’s average of 2.05%, in turn, attracting investors as it indicates a steady income stream.
Is Artisan Partners stock worth a look to earn a high dividend yield? Let’s check the company’s fundamentals to understand its risks and rewards for making a proper investment decision.
APAM pays a variable dividend, amounting to 80% of the cash generated each quarter. It also pays a special dividend.
Apart from regular quarterly dividend payouts, Artisan Partners’ total assets under management (AUM) have been witnessing improvements. Total AUM saw a five-year (2018-2023) compound annual growth rate (CAGR) of 9.3%. The company’s efforts to improve and add investment strategies have supported its AUM growth.
Going forward, an improvement in global equity and debt markets, along with stabilization of the economy, will likely support AUM, thus aiding top-line growth. Our estimate for total AUM suggests a three-year CAGR of 8% by 2026.
Artisan Partners witnessed a CAGR of 3.3% in net revenues over the last five years (ended 2023) with some volatility. The increase was mainly driven by a solid AUM balance. The company’s diverse product offerings and investment strategies continue to attract investors and are expected to support revenue growth in the upcoming period. We project total revenues to rise 11.2%, 8.5% and 7.5% in 2024, 2025 and 2026, respectively.
Artisan Partners maintains a decent balance sheet. As of Dec 31, 2023, the company had borrowings of around $199.3 million, which have been relatively stable over the past few quarters. Cash and cash equivalents, as of the same date, were $141 million, and it had $100 million in its revolving credit facility.
On the flip side, Artisan Partners’ bottom line continues to suffer from rising operating expenses. Also, volatile trends in net client cash flows pose a major concern.
Over the past year, shares of APAM have gained 43.8% compared with the industry‘s upside of 41.3%.
Image Source: Zacks Investment Research
Therefore, income investors must consider betting on this Zacks Rank #1 (Strong Buy) stock as it will likely help generate robust returns over time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Companies Offering Solid Dividends
Stocks like KeyCorp (KEY - Free Report) and Truist Financial (TFC - Free Report) are worth a look as these, too, have robust dividend yields.
Considering the last day’s closing price, KEY’s dividend yield currently stands at 5.44%. In the past three months, KEY shares have rallied 44.9%.
Based on the last day’s closing price, TFC’s dividend yield currently stands at 5.53%. In the past three months, TFC shares have gained 34.6%.