Dividend.com has added a top asset management firm to the Best Dividend Stocks List and removed a global industrial manufacturer from the list.
The house always wins. While the saying predominantly focuses on casinos in Las Vegas and Atlantic City, it could also apply to Wall Street. It’s no secret that Wall Street makes a bundle off of investors, which includes both the bad guys ripping off investors with high fees and the good guys who truly have investors’ best interests at heart. Luckily for our latest Best Dividend Stock List’s pick, they fit into the latter camp.
Our asset manager is one of the good guys and has a long history of doing right by its fund holders. This fact – coupled with great long-term outperformance – has helped our pick find its way into more retirement plans and has continued to boost assets under management (AUM) for years. Moreover, the financial stock has continued to unveil more “fiduciary ready” index and passive funds to its impressive umbrella of actively managed mutual funds. This has helped it retain many of the assets it already holds – unlike many of its active-only competitors.
And with more assets generating fee-revenue for the firm, our pick has continued to be a strong dividend grower for decades – three decades in fact. In fact, our pick has managed to grow its payout by nearly 11% annually, on average, over the last five years.
With retirement plan assets growing and investors flocking to passive/active funds worth their weight, our new pick has plenty of growth still left in the tank.
To summarize, here are five reasons why you should own this stock:
- Manages nearly $1 trillion across 47 different countries.
- Winner from the fiduciary movement with target-date fund leadership, new passive options, no sales loads and low-cost funds.
- Profits no matter what the market is doing thanks to its fee-revenue model.
- This year represents the 31st consecutive year of dividend increases – with an average 22% annual CAGR since its IPO.
- Healthy payout ratio of nearly 40% and growing yield of 2.50%.
Soft Removal of an Industrial Firm From the Best Dividend Stocks List
In order to add such a wonderful asset manager, we are forced to say goodbye to another stock on our coveted list. For one of our leading industrial picks, the market’s recent hiccups have taken some of the momentum out of shares. With its overall DARS score lower, we have been forced to soft remove the firm from our Best Dividend Stocks List. However, the firm still offers plenty of potential for income seekers and has numerous positives for yield generation. As a result, we still remain bullish on the name.
Find out which ‘tech hero’ made it to our Best Dividend Stocks List here.