Are You Looking for a High-Growth Dividend Stock? Janus Henderson Group plc (JHG) Could Be a Great Choice
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Janus Henderson Group plc (JHG...
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Janus Henderson Group plc in Focus
Based in London, Janus Henderson Group plc (JHG) is in the Finance sector, and so far this year, shares have seen a price change of 33.53%. The company is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.5%. This compares to the Financial - Investment Management industry's yield of 1.55% and the S&P 500's yield of 1.37%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 5.6% from last year. In the past five-year period, Janus Henderson Group plc has increased its dividend 2 times on a year-over-year basis for an average annual increase of 10.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Janus Henderson Group plc's current payout ratio is 40%. This means it paid out 40% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, JHG expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $4.06 per share, representing a year-over-year earnings growth rate of 34.88%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that JHG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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