SEI Investments (SEIC) Announces Dividend Hike, Buyback Plan
SEI Investments Company’s SEIC board of directors has announced enhanced capital distribution plans, including a dividend hike and an increase in the share repurchase program. The company announced a semi-annual cash dividend of 46 cents per share, representing an increase of 7% from the prior payout. The dividend will be paid out on Jan 9, 2024, to shareholders on record as of Dec 28, 2023.
SEIC has a record of continuously raising dividends. Prior to this hike, the company announced a dividend raise in December 2022. The amount was increased from 40 cents per share to 43 cents.
SEI Investments has raised its semi-annual dividend five times in the last five years. Also, it has a five-year annualized dividend growth rate of 6.59%. Currently, the company's payout ratio is 25% of earnings.
Concurrently, the company announced an increase in share buyback authorization by $250 million. This brings SEIC’s available authorization under the program to nearly $289 million.
Earlier this April, SEI Investments increased its buyback authorization by $250 million. As of Sep 30, 2023, $101 million worth of shares were left to be repurchased.
Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, SEI Investments will keep enhancing shareholder value.
Over the past six months, shares of SEI Investments have gained 4.5%, underperforming the 16.9% rally of the industry it belongs to.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Dividend Hikes by Other Finance Stocks
Raymond James Financial, Inc.’s RJF board of directors has declared a quarterly cash dividend of 45 cents per share, representing an increase of 7.1% from the prior payout. The new dividend will be paid out on Jan 16, 2024, to shareholders on record as of Jan 2, 2024.
Raymond James has a track record of regularly raising dividends over the last decade. Prior to the recent hike, the company had announced a 24% increase in its quarterly dividend to 42 cents in December 2022.
U.S. Bancorp USB declared a quarterly cash dividend of 49 cents per share, marking an increase of 2.1% from the prior quarter. The dividend will be paid out on Jan 16, 2024, to shareholders of record as of Dec 29, 2023.
Prior to the recent hike, USB raised its dividend in September 2022 by 4.3% to 48 cents per share. Also, the company has a five-year annualized dividend growth of 5.7%. Currently, its payout ratio is 42% of earnings.
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