Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) is about to trade ex-dividend in the next 4 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Therefore, if you purchase Silvercrest Asset Management Group's shares on or after the 8th of December, you won't be eligible to receive the dividend, when it is paid on the 16th of December.
The company's upcoming dividend is US$0.18 a share, following on from the last 12 months, when the company distributed a total of US$0.72 per share to shareholders. Calculating the last year's worth of payments shows that Silvercrest Asset Management Group has a trailing yield of 3.8% on the current share price of $19.14. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Silvercrest Asset Management Group has been able to grow its dividends, or if the dividend might be cut.
Check out our latest analysis for Silvercrest Asset Management Group
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Silvercrest Asset Management Group paid out a comfortable 31% of its profit last year.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Silvercrest Asset Management Group's earnings have been skyrocketing, up 29% per annum for the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, nine years ago, Silvercrest Asset Management Group has lifted its dividend by approximately 4.6% a year on average. Earnings per share have been growing much quicker than dividends, potentially because Silvercrest Asset Management Group is keeping back more of its profits to grow the business.
To Sum It Up
Has Silvercrest Asset Management Group got what it takes to maintain its dividend payments? Companies like Silvercrest Asset Management Group that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. In summary, Silvercrest Asset Management Group appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
While it's tempting to invest in Silvercrest Asset Management Group for the dividends alone, you should always be mindful of the risks involved. For example, we've found 2 warning signs for Silvercrest Asset Management Group that we recommend you consider before investing in the business.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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