Silvercrest Asset Management Group (NASDAQ:SAMG) Has Affirmed Its Dividend Of $0.18

The board of Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) has announced that it will pay a dividend of $0.18 per share on the 16th of December. The dividend yield will be 3.7% based on this payment which is still above the industry average.

View our latest analysis for Silvercrest Asset Management Group

Silvercrest Asset Management Group's Payment Has Solid Earnings Coverage

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. However, prior to this announcement, Silvercrest Asset Management Group's dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.

The next year is set to see EPS grow by 45.5%. If the dividend continues along recent trends, we estimate the payout ratio will be 22%, which is in the range that makes us comfortable with the sustainability of the dividend.

Silvercrest Asset Management Group Is Still Building Its Track Record

It is great to see that Silvercrest Asset Management Group has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2013, the dividend has gone from $0.48 total annually to $0.72. This means that it has been growing its distributions at 4.6% per annum over that time. Silvercrest Asset Management Group hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. Silvercrest Asset Management Group has impressed us by growing EPS at 22% per year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

Silvercrest Asset Management Group Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Silvercrest Asset Management Group might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 2 warning signs for Silvercrest Asset Management Group that you should be aware of before investing. Is Silvercrest Asset Management Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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