Our analysis is based on comparing Westwood Holdings Group, Inc. with the following peers – Affiliated Managers Group, Inc., Franklin Resources, Inc., Pzena Investment Management, Inc. Class A, GAMCO Investors, Inc. Class A, Diamond Hill Investment Group, Inc., U.S. Global Investors, Inc. Class A and Silvercrest Asset Management Group, Inc. Class A (AMG-US, BEN-US, PZN-US, GBL-US, DHIL-US, GROW-US and SAMG-US).
Westwood Holdings Group, Inc.’s dividend yield is 5.53 percent and its dividend payout is 77.78 percent. This compares to a peer median dividend yield of 2.45 percent and a payout level of 20 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 100 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), WHG-US paid a high quality dividend, which represents a yield of 4.39% at the current price.
- Dividends paid during each of the last five years were consistently of high quality.
- The ending cash balance, with a dividend coverage of 3.72x, 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), WHG-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 1.95x), investing cash flow (coverage of -0.05x), issuance cash flow (coverage of -0.66x) and twelve-month prior cash (coverage of 1.30x), for a total dividend coverage of 4.72x.
WHG-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.38x). Thus, the total coverage including share buybacks is 5.10x, 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 (%)||4.26||1.84||2.72||3.7||3.68||5.53|
|Dividend Payout (%)||309.7||70.09||52.75||62.16||84.12||77.78|
A complete list of metrics and analysis is available on the company page.
Westwood Holdings Group, Inc. manages investment assets and provides services for its clients through its subsidiaries, Westwood Management Corp., Westwood Trust Co. and Westwood International Advisors, Inc. The company operates its business through two segments: Advisory and Trust. The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals and the Westwood Funds, as well as investment sub advisory services to mutual funds and its trust segment. The Trust segment provides trust and custodial services to its clients and to its advisory segment and sponsors common trust funds to institutions and high net worth individuals. Westwood Holdings Group was founded by Susan Montgomery Byrne on December 12, 2001 and is headquartered in Dallas, TX.
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