Finding a dividend stock with a strong history and ultra-high yield is rather hard to find. While there are certainly plenty of dividend stocks out there, and some have super-high yields, many are quite new. This means there isn’t the proof that these companies can do well during a downturn, such as the one we’re going through right now.
When there is an ultra-high-yielding dividend stock offering up secure passive income with a history of growth and sustainability, grab it. Grab it in bulk. And hold it for dear life.
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Fiera Capital
Today, the dividend stock I would consider grabbing while you can is Fiera Capital (TSX:FSZ). Fiera stock is a strong choice for investors who want value, passive income, and all but a guaranteed return to normal share prices after the downturn is over.
Fiera stock has been around for decades, and, in the last two decades alone, has seen shares climb 133%. While that’s not insanely high, it’s still stable growth that comes in at a compound annual growth rate (CAGR) of 7.03% as of writing.
Then there is, of course, the dividend to consider. Fiera stock currently has a 9.98% dividend yield as of writing. That’s $0.86 per share annually. That dividend has also grown in the last few years as well for a CAGR of 10.39% in the last decade alone.
Yet it’s still valuable today!
Now, with a high yield like that and history of growth and stability, you may be surprised to hear that Fiera stock remains in value territory as of writing — or at least near it. Fiera stock currently trades at 15.35 times earnings, which puts it just on par with being a valuable stock.
Part of this value may come from shares dipping after earnings narrowly missed estimates. Assets under management (AUM) decreased 15.8% compared with the year before due to the market dropping. Revenue also dropped, with net revenue a fraction of what it was.
Yet again, this is tied to market performance. Fiera stock focuses on growth and value stocks, companies that may do poorly now but rebound well after. And the company has a strong history of proof that it can pick out the best in the batch.
Down but not out
Fiera stock may be down now because of these earnings, but don’t think that’ll last forever. That’s what analysts believe, at least. They cut near-term estimates, believing the stock will perform along the lines of the rest of the companies in the sector.
What it will come down to is the company’s “ability to successfully navigate increasingly volatile market conditions,” according to one analyst. Investors should see an eventual improvement in its assets under management as well as sales. With a diverse business line and huge dividend yield, however, it provides a strong reason to purchase today.
That is, it does if you’re a long-term holder. Analysts are quite confident the company will recover, but if you’re looking for a short-term growth stock, then Fiera stock may not be for you. That being said, if you want passive income to pour in for the next several years, I would definitely consider the dividend stock.
