Silvercrest Asset Management Group (NASDAQ:SAMG) Is Paying Out A Dividend Of $0.18

The board of Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) has announced that it will pay a dividend on the 16th of December, with investors receiving $0.18 per share. The dividend yield will be 4.0% based on this payment which is still above the industry average.

Check out our latest analysis for Silvercrest Asset Management Group

Silvercrest Asset Management Group Doesn't Earn Enough To Cover Its Payments

If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, Silvercrest Asset Management Group was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Over the next year, EPS is forecast to fall by 72.6%. If the dividend continues along the path it has been on recently, the payout ratio in 12 months could be 117%, which is definitely a bit high to be sustainable going forward.

Silvercrest Asset Management Group Is Still Building Its Track Record

Silvercrest Asset Management Group's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The dividend has gone from an annual total of $0.48 in 2013 to the most recent total annual payment of $0.72. This implies that the company grew its distributions at a yearly rate of about 4.6% over that duration. 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

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Silvercrest Asset Management Group has been growing its earnings per share at 22% a year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

We Really Like Silvercrest Asset Management Group's Dividend

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Taking the debate a bit further, we've identified 2 warning signs for Silvercrest Asset Management Group that investors need to be conscious of moving forward. 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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