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Explaining money management concepts


Niche Asset Manager with Nearly 40 Years of Dividend Growth Added to Best Dividend Stocks List

Aaron Levitt Dec 11, 2019

Dividend.com has added an asset manager to the Best Dividend Stocks List and removed a leading utility from the list.

Arguably the biggest trend in investment management has been the rise of indexing, exchange-traded funds (ETFs) and passive investing. As more investors look toward these vehicles for their portfolios, many traditional and active managers have continued to bleed assets, seek buyouts and fold up funds. But by looking beyond the poor headlines, you can see a different picture. There are riches in niches.

Case in point is our new Best Dividend Stocks List pick in asset management.

Our new pick has continued to see its assets under management rise as the firm focuses on select areas of the market. Fixed income, speciality funds and portfolio implementation products are often immune to the grasp of passive/indexed management. It’s here that an active management approach can provide plenty of benefits for investors. And it’s here that our new pick has continued to thrive as other rivals have faltered.

As a result, our pick has continued to see its management fees rise and cash flows be robust. All of this has translated into some steady dividend and buyback growth for the firm over the last few years. In fact, over the autumn, our pick managed to raise its payout by over 7%.

The future looks rosy as well. With the market getting a bit dicey and the Fed cutting rates, investors have been looking toward alternatives and other products to meet their investing goals. This has allowed our pick to feast on new inflows. And with moves into new fund vehicles like non-transparent ETFs, our pick seems poised to keep the streak going far into the future.

All in all, our new pick is proving that not all asset managers are heading to the graveyard.

To summarize, here are five reasons why you should own this stock:

1. Niche asset manager covering many specialized products and asset class not easily covered by passive investments.
2. Nearly $500 billion in assets under management. AUM increasing more than 13% year-over-year.
3. Higher fee private funds, separately managed accounts and similar vehicles are growing as a percentage of revenues.
4. Paid an increasing dividend for nearly 40 years straight.
5. Healthy payout ratio of 43% and yield of 3.17%.

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