Understanding Raymond James Financial Inc's dividend dynamics
Raymond James Financial Inc (NYSE:RJF) recently announced a dividend of $0.45 per share, payable on April 15, 2024, with an ex-dividend date of March 28, 2024. The company's dividend history, yield, and growth rate are also in focus as investors look forward to future payouts. Let's take a closer look at Raymond James Financial Inc.'s dividend history and assess its sustainability using data from GuruFocus.
What does Raymond James Financial, Inc. do?
Raymond James Financial is a financial holding company whose principal activities include asset management, investment banking, asset management, and commercial banking. The firm supports his more than 8,000 employee and independent contractor financial advisors across the United States, Canada, and the United Kingdom, and as of September 2023, he has over $1.2 trillion in assets under management. I am. Approximately 90% of the company's revenue comes from the United States and 70% from the United States. I am in charge of the company's wealth management department.
A glimpse of Raymond James Financial Inc's dividend history
Raymond James Financial Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Raymond James Financial, Inc. has increased its dividend every year since 2002. As such, the stock is listed as a Dividend Achiever, an honor bestowed on companies that have increased their dividends every year for at least the past 22 years. Below is a graph showing his annual dividend per share to track historical trends.
Analyzing Raymond James Financial Co.'s dividend yield and growth rate
As of today, Raymond James Financial Inc. has a 12-month forward dividend yield of 1.35% and a 12-month forward dividend yield of 1.43%. This suggests that dividend increases are expected over the next 12 months.
Over the past three years, Raymond James Financial's annual dividend growth rate was 19.40%. When extended to a five-year period, this rate decreased to 16.70% per year. Over the past 10 years, Raymond James Financial Co.'s annual dividend growth rate per share has been an impressive 15.80%.
Based on Raymond James Financial Inc's dividend yield and 5-year growth rate, Raymond James Financial Inc stock has a 5-year cost yield of approximately 2.92% as of today.
Questions about sustainability: Dividend payout ratio and profitability
To assess dividend sustainability, you need to evaluate a company's payout ratio. Dividend payout ratio helps determine the proportion of a company's profits that it distributes as dividends. A low ratio indicates that the company is retaining a significant portion of its earnings, thereby ensuring that it has funds for future growth or unexpected economic downturns. As of December 31, 2023, Raymond James Financial, Inc.'s dividend payout ratio is 0.20x.
Raymond James Financial Inc's Profitability Rank helps you understand the company's profitability compared to its peers. GuruFocus ranks Raymond James Financial's profitability at his 7 out of 10 as of December 31, 2023, suggesting a positive outlook for profitability. The company has reported positive net income every year for the past 10 years, further cementing its strong profitability.
Growth indicators: future outlook
To ensure dividend sustainability, companies must have solid growth metrics. Raymond James Financial Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is favorable compared to its competitors.
Earnings are the lifeblood of any company, and Raymond James Financial's earnings per share, combined with its three-year earnings growth rate, point to a strong earnings model. Raymond James Financial Inc's revenue has grown on average at around 12.10% per year, which is higher than around 61.82% of its global competitors.
The company's three-year EPS growth rate indicates its ability to grow earnings, which is a key factor in maintaining a dividend over the long term. Over the past three years, Raymond James Financial Inc's revenue has grown by an average of about 26.70% per year. This is higher than about 70.36% of its global competitors.
Finally, the company's five-year EBITDA growth rate of 15.70% is higher than approximately 61.5% of its global competitors, further underscoring the strength of its financial health.
next step
Given Raymond James Financial's stable dividend payments, strong dividend growth rate, prudent payout ratio, and strong profitability and growth metrics, the company is potentially attractive to value investors focused on income generation. It stands out as an option. This data suggests that Raymond James Financial Inc. not only provides regular dividends to shareholders, but also that it is poised for sustainable long-term growth. As investors evaluate their portfolios, they may find Raymond James Financial's dividend strategy a compelling reason to consider the stock as part of a diversified investment approach.
GuruFocus Premium users can screen for high dividend yield stocks using the High Dividend Yield Screener.
This article created by GuruFocus is intended to provide general insight and is not intended as financial advice. Our commentary is based on historical data and analyst forecasts using an unbiased methodology and is not intended to serve as specific investment guidance. It does not constitute a recommendation to buy or sell stocks, and does not take into account your individual investment objectives or financial situation. Our objective is to provide fundamental data-driven analysis over time. Please note that our analysis may not incorporate the latest announcements or qualitative information from price-sensitive companies. GuruFocus has no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
