Our analysis is based on comparing Janus Capital Group, Inc. with the following peers – Affiliated Managers Group, Inc., Legg Mason, Inc., BlackRock, Inc., Invesco Ltd., GAMCO Investors, Inc. Class A, Virtus Investment Partners, Inc., AllianceBernstein Holding L.P., Cohen & Steers, Inc., Blackstone Group L.P. and Oaktree Capital Group, LLC Class A (AMG-US, LM-US, BLK-US, IVZ-US, GBL-US, VRTS-US, AB-US, CNS-US, BX-US and OAK-US).
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), JNS-US paid a high quality dividend, which represents a yield of 3.23% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were high quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 4.78x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2017), JNS-US paid a high quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.20x), investing cash flow (coverage of -0.65x), issuance cash flow (coverage of -0.91x) and twelve-month prior cash (coverage of 4.83x), for a total dividend coverage of 5.78x.
JNS-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.02x) and net share buybacks (coverage of -0.60x). Thus, the total coverage including share buybacks is 6.38x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||3.4||1.71||1.96||2.52||3.18||3.23|
|Dividend Payout (%)||52.73||33.87||38.27||43.75||53.85||57.14|
A complete list of metrics and analysis is available on the company page.
Janus Capital Group Inc. engages in the provision of investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, other pooled investment vehicles, separate accounts and sub advised relationships in both domestic and international markets. It also provides investment management competencies across disciplines including fundamental U.S. and global equities, mathematical equities, fixed income and alternatives through its subsidiaries, Janus Capital Management LLC, INTECH Investment Management LLC and Perkins Investment Management LLC. The company’s investment products are distributed through three channels: Retail Intermediary, Institutional, and International. The Retail Intermediary channel serves financial intermediaries and retirement platforms, which include asset managers, banks and trusts, broker-dealers, independent planners and insurance companies. The Institutional channel serves corporations, endowments, foundations, Taft-Hartley funds, and public fund clients. The International channel serves professional investors, who are located outside of the United States. Activities in this sector include central and local government pension plans, corporate pension plans, multi-managers, insurance companies, and private banks. The company was founded on January 1, 2003 and is headquartered in Denver, CO.
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