Silvercrest Asset Management Group's (NASDAQ:SAMG) Dividend Will Be Increased To US$0.17

Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) will increase its dividend on the 17th of December to US$0.17. This will take the annual payment to 4.0% of the stock price, which is above what most companies in the industry pay.

Check out 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. Before making this announcement, Silvercrest Asset Management Group was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Over the next year, EPS is forecast to fall by 5.9%. However, if the dividend continues along recent trends, we estimate the payout ratio could reach 92%, meaning that most of the company's earnings are being paid out to shareholders.

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. Since 2013, the first annual payment was US$0.48, compared to the most recent full-year payment of US$0.68. This implies that the company grew its distributions at a yearly rate of about 4.5% over that duration. 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.

Silvercrest Asset Management Group Could Grow Its Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Silvercrest Asset Management Group has seen EPS rising for the last five years, at 6.7% per annum. 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.

Our Thoughts On Silvercrest Asset Management Group's Dividend

In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Silvercrest Asset Management Group that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high performing dividend stock.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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