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 4.40 percent and its dividend payout is 84.12 percent. This compares to a peer median dividend yield of 2.54 percent and a payout level of 20.69 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 83 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 December 31, 2016), WHG-US paid a high quality dividend, which represents a yield of 4.31% 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 1.73x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to December 31, 2016), 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 1.60x), investing cash flow (coverage of 0.75x), issuance cash flow (coverage of -0.80x) and twelve-month prior cash (coverage of 1.17x), for a total dividend coverage of 2.73x.
WHG-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.32x). Thus, the total coverage including share buybacks is 3.05x, 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||4.4|
|Dividend Payout (%)||309.7||70.09||52.75||62.16||84.12||84.12|
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.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.