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SEI Investments Announces Dividend Hike: Is It Sustainable?

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Key Takeaways

  • SEI Investments raised its dividend to $0.52 per share, up 6.1%, continuing 24 years of consistent hikes.
  • The board added $600M to SEIC's buyback program, lifting total authorization to $773.2M.
  • SEIC holds $792.8M in cash against $43.8M in debt, supporting sustained capital returns.

SEI Investments Company’s (SEIC - Free Report) board of directors has announced a semi-annual cash dividend of 52 cents per share, representing an increase of 6.1% from the prior payout. The dividend will be paid out on Jan. 12, 2026, to shareholders on record as of Dec. 29, 2025.

The company has been raising its dividends for the last 24 years. Before this, SEIC increased its dividend by 6.5% to 49 cents per share in December 2024. The company has a five-year annualized dividend growth rate of 7%. Currently, the company's payout ratio is 18% of earnings.

Based on its yesterday’s closing price of $83.08, SEIC’s current dividend yield is 1.25%.

SEI Investments’ Share Repurchase Program

Apart from regular dividend hikes, the company has a share repurchase program. In October, SEIC’s board of directors approved a $600 million increase to its stock buyback program, bringing the total available authorization to approximately $773.2 million as of Oct. 20, 2025. 

Before this, the company announced an increase in share buyback authorization by $400 million in October 2024.

Is SEIC's Capital Distribution Plan Sustainable?

SEI Investments has a strong balance sheet. As of Sept. 30, 2025, the company had a total debt of $43.8 million, significantly lower than the cash and cash equivalents of $792.8 million.

Supported by its earnings strength and solid liquidity position, the company is expected to continue with efficient capital deployment activities. Through this, SEI Investments will keep enhancing shareholder value.

SEIC’s Zacks Rank & Price Performance

Shares of SEI Investments have lost 4.2% compared with the industry’s decline of 11.7% over the past three months.
 

Zacks Investment Research
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Currently, SEIC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Stocks That Took Similar Steps

Franklin Resources, Inc. (BEN - Free Report) announced enhanced capital distribution plans, including a dividend hike and a new share buyback program. 

BEN's board of directors has declared a quarterly cash dividend of 33 cents per share, marking an increase of 3.1% from the prior payout. The new dividend will be paid out on Jan. 9, 2025, to shareholders on record as of Dec. 30, 2025.

Also, Franklin’s board authorized an additional 20.8 million shares for repurchases, bringing the total available shares to 40 million. The buyback plan doesn’t have an expiration date.

Truist Financial Corp.’s (TFC - Free Report) board of directors has approved a new share repurchase plan. Under the new authorization, the company may repurchase up to $10 billion of its shares. The program takes effect immediately and has no stated expiration date.

This new program will replace TFC’s existing share repurchase plan of $5 billion announced in 2023. As of Dec. 16, 2025, roughly $1.5 billion shares were available for buyback.


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Franklin Resources, Inc. (BEN) - free report >>

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