A Comprehensive Analysis of the Company's Dividend History, Yield, Growth, and Prospects
Raymond James Financial Inc(RJF, Financial) recently announced a dividend of $0.42 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-09-29. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Raymond James Financial Incs dividend performance and assess its sustainability.
About Raymond James Financial Inc
Raymond James Financial is a financial holding company whose major operations include wealth management, investment banking, asset management, and commercial banking. The company supports more than 8,000 employee and independent contractor financial advisors across the United States, Canada, and the United Kingdom with over $1 trillion of assets under administration as of September 2022. Approximately 90% of the company's revenue is from the U.S. and 70% is from the company's wealth-management segment.
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 each year since 2002. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 21 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Raymond James Financial Inc's Dividend Yield and Growth
As of today, Raymond James Financial Inc currently has a 12-month trailing dividend yield of 1.60% and a 12-month forward dividend yield of 1.68%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Raymond James Financial Inc's annual dividend growth rate was 14.50%. Extended to a five-year horizon, this rate increased to 16.50% per year. And over the past decade, Raymond James Financial Inc's annual dividends per share growth rate stands at an impressive 14.70%. Based on Raymond James Financial Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Raymond James Financial Inc stock as of today is approximately 3.43%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Raymond James Financial Inc's dividend payout ratio is 0.20.
Raymond James Financial Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Raymond James Financial Inc's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Raymond James Financial Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Raymond James Financial Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Raymond James Financial Inc's revenue has increased by approximately 12.50% per year on average, a rate that outperforms than approximately 60.7% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Raymond James Financial Inc's earnings increased by approximately 13.50% per year on average, a rate that outperforms than approximately 51.9% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 18.20%, which outperforms than approximately 62.3% of global competitors.
Conclusion
In conclusion, Raymond James Financial Inc presents a compelling case for dividend investors. With a consistent history of dividend payments, a strong growth rate, a sustainable payout ratio, and impressive profitability and growth metrics, the company appears well-positioned to maintain its dividend performance. However, as is always the case with investments, it's crucial to conduct thorough research and consider all factors before making a decision.
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