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

Silvercrest Asset Management Group Inc.'s (NASDAQ:SAMG) investors are due to receive a payment of $0.18 per share on 16th of June. This means the annual payment is 4.1% of the current stock price, which is above the average for the industry.

View our latest analysis for Silvercrest Asset Management Group

Silvercrest Asset Management Group's Earnings Easily Cover The Distributions

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. However, prior to this announcement, Silvercrest Asset Management Group's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to fall by 33.9%. If the dividend continues along recent trends, we estimate the payout ratio could be 72%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future.

Silvercrest Asset Management Group Is Still Building Its Track Record

The dividend's track record has been pretty solid, but with only 9 years of history we want to see a few more years of history before making any solid conclusions. Since 2014, the annual payment back then was $0.48, compared to the most recent full-year payment of $0.72. This works out to be a compound annual growth rate (CAGR) of approximately 4.6% a year over that time. It's good to see at least some dividend growth. Yet with a relatively short dividend paying history, we wouldn't want to depend on this dividend too heavily.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Silvercrest Asset Management Group has been growing its earnings per share at 16% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Silvercrest Asset Management Group's prospects of growing its dividend payments in the 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. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 2 warning signs for Silvercrest Asset Management Group that investors should know about before committing capital to this stock. 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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