AGF Management Ltd's Dividend Analysis
An In-Depth Look at AGF Management Ltd's Upcoming Dividend and Financial Health
AGF Management Ltd (AGFMF) recently announced a dividend of $0.11 per share, payable on 2024-01-16, with the ex-dividend date set for 2024-01-05. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into AGF Management Ltd's dividend performance and assess its sustainability.
What Does AGF Management Ltd Do?
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AGF Management is a Canada-based asset manager with operations and investments in Canada, the United States, the United Kingdom, Ireland, and Asia. At the end of September, the firm had CAD 41.0 billion in total assets under management. Its funds are weighted more heavily toward equities, with close to three fourths of retail AUM being equity-related. That said, the company does use fundamental, quantitative, and alternative strategies to manage its investment funds. AGF Management has a more meaningful portion of its business tied to institutional clients than its peers, with one fourth of its total AUM derived from institutional and subadvised accounts. The company derives 17% of its managed assets from high-net-worth clients.
A Glimpse at AGF Management Ltd's Dividend History
AGF Management Ltd has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down AGF Management Ltd's Dividend Yield and Growth
As of today, AGF Management Ltd currently has a 12-month trailing dividend yield of 6.01% and a 12-month forward dividend yield of 6.12%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, AGF Management Ltd's annual dividend growth rate was 6.80%. Extended to a five-year horizon, this rate decreased to 3.40% per year. And over the past decade, AGF Management Ltd's annual dividends per share growth rate stands at -12.20%.
Based on AGF Management Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of AGF Management Ltd stock as of today is approximately 7.10%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-08-31, AGF Management Ltd's dividend payout ratio is 0.31.
AGF Management Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks AGF Management Ltd's profitability 7 out of 10 as of 2023-08-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. AGF Management Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and AGF Management Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. AGF Management Ltd's revenue has increased by approximately 9.10% per year on average, a rate that outperforms approximately 55.13% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, AGF Management Ltd's earnings increased by approximately 9.50% per year on average, a rate that outperforms approximately 51.32% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -3.80%, which outperforms approximately 26.48% of global competitors.
Next Steps
Given AGF Management Ltd's consistent dividend payments, a stable dividend growth rate, a reasonable payout ratio, solid profitability, and positive growth metrics, the company presents an attractive profile for value investors seeking income through dividends. While past performance is indicative of the company's commitment to shareholder returns, investors should also consider the broader economic environment and AGF Management Ltd's strategic position within the asset management industry when evaluating its long-term dividend sustainability.
For investors keen on exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
