Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) Looks Interesting, And It's About To Pay A Dividend

Readers hoping to buy Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You will need to purchase shares before the 11th of March to receive the dividend, which will be paid on the 19th of March.

Silvercrest Asset Management Group's upcoming dividend is US$0.16 a share, following on from the last 12 months, when the company distributed a total of US$0.64 per share to shareholders. Last year's total dividend payments show that Silvercrest Asset Management Group has a trailing yield of 4.3% on the current share price of $15. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

View our latest analysis for Silvercrest Asset Management Group

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Silvercrest Asset Management Group is paying out an acceptable 61% of its profit, a common payout level among most companies.

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?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see Silvercrest Asset Management Group earnings per share are up 9.1% per annum over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Silvercrest Asset Management Group has delivered 4.2% dividend growth per year on average over the past seven years. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

To Sum It Up

Should investors buy Silvercrest Asset Management Group for the upcoming dividend? Silvercrest Asset Management Group has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. We're unconvinced on the company's merits, and think there might be better opportunities out there.

If you're not too concerned about Silvercrest Asset Management Group's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. For example, we've found 2 warning signs for Silvercrest Asset Management Group that we recommend you consider before investing in the business.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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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