Assessing Victory Capital Holdings Inc's Dividend Sustainability and Growth
Victory Capital Holdings Inc (VCTR, Financial) recently announced a dividend of $0.32 per share, payable on 2023-12-22, with the ex-dividend date set for 2023-12-08. 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 Victory Capital Holdings Inc's dividend performance and assess its sustainability.
What Does Victory Capital Holdings Inc Do?
Victory Capital Holdings Inc is an independent investment management firm. The company operates its business through franchises and solutions platform. It provides centralized distribution, marketing, and operations infrastructure to the company's franchises and solutions platform. The company operates through one business segment that is Investment management services and products to institutional, intermediary, retirement platforms, and individual investors. The franchises and solutions platform manages a variety of investment strategies for its customers. It derives revenues from asset-based fees from investment management products and services to individuals and institutions.
A Glimpse at Victory Capital Holdings Inc's Dividend History
Victory Capital Holdings Inc has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a quarterly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Victory Capital Holdings Inc's Dividend Yield and Growth
As of today, Victory Capital Holdings Inc currently has a 12-month trailing dividend yield of 3.73% and a 12-month forward dividend yield of 3.95%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Victory Capital Holdings Inc's annual dividend growth rate was 115.40%. Based on Victory Capital Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Victory Capital Holdings Inc stock as of today is approximately 3.73%.
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 2023-09-30, Victory Capital Holdings Inc's dividend payout ratio is 0.40.
Victory Capital Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Victory Capital Holdings Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Victory Capital Holdings Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Victory Capital Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Victory Capital Holdings Inc's revenue has increased by approximately 12.40% per year on average, a rate that outperforms approximately 60.5% 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, Victory Capital Holdings Inc's earnings increased by approximately 34.20% per year on average, a rate that outperforms approximately 78.19% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 57.10%, which outperforms approximately 94.94% of global competitors.
Victory Capital Holdings Inc's Dividend: A Comprehensive Look Forward
In conclusion, Victory Capital Holdings Inc's dividend payments, impressive growth rate, prudent payout ratio, and strong profitability and growth metrics paint a promising picture for value investors. These factors, combined, suggest that Victory Capital Holdings Inc is well-positioned to sustain and potentially increase its dividend payouts in the future, making it a noteworthy consideration for dividend-seeking portfolios. As investors, it's crucial to keep an eye on these indicators as they often precede the company's long-term financial health and dividend viability. Will Victory Capital Holdings Inc continue to reward its shareholders with growing dividends? Only time and continued analysis will tell.
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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.
