Dividend investing allows people to create passive-income streams to augment active or regular income. The process is simple and requires little work or monitoring. Most payouts are quarterly, although some public companies pay monthly dividends.
The best part about this investing strategy is that you can target an income flow every year. However, hitting a specific amount depends on the stock’s dividend yield and invested capital. If your investible fund is limited, it might take time to accumulate shares to produce the desired yearly dividends.
Assuming the goal is to make $2,500 yearly, you must have $62,500 to invest, and the dividend yield should be at least 4%. The amount is quite considerable, but there’s another way to earn it at less cash outlay. Fiera Capital (TSX: FSZ) trades at $5.62 per share and pays a mouth-watering 15.3% dividend.
If you have the risk appetite to invest in an independent asset management firm, the required capital will reduce significantly by 73.85%. You can purchase 2,908 shares or invest $16,342.96 only to make $2,500.47 in dividends every year.
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At the forefront of investment management science
Fiera Capital operates globally and is still growing. The $590.7 million asset management firm delivers customized multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients. Clients in North America, Europe, and key Asian markets form its customer base.
Management aims to be the vanguard of investment-management science that creates sustainable wealth for clients. Regular investors may not understand or grasp the business thoroughly, but Fiera Capital essentially offers traditional and non-traditional investment strategies. The team works with endowments, foundations, corporations, and private/public funds.
Besides its expertise in equities and fixed-income investments, Fiera Capital has broadened investment capabilities across traditional and alternative asset classes. For U.S. clients, the investment adviser is Fiera Capital Inc. As of June 30, 2023, the assets under management (AUM) are approximately $164.2 billion.
Financial performance
In the first half of 2023, total revenues and net earnings declined 5.7% and 43.8% year over year to $316.9 million and $7.9 million. In the second quarter (Q2) of 2023, total revenues and net earnings increased 1.75% versus Q1 2023. Notably, net earnings reached $10.5 million compared to the $2.5 million net loss in the preceding quarter.
Despite this, “the environment for flows remained challenged during the quarter, given the persistent macroeconomic uncertainty and clients’ continued overweighting to cash. However, we maintained our consistent track record of positive organic growth in our Private Markets platform,” said Jean-Guy Desjardins, Fiera’s chairman and Global chief executive officer (CEO).
The company is also regionalizing its distribution model as part of its global expansion strategy. Fiera hired an executive director and CEO for the Europe, Middle East, Africa, and Asia regions. Expect leadership announcements for Canada and the U.S. by the end of Q3 2023.
Dividend track record
Fiera Capital trades at a discount and is down 29.29% year to date. The sub-par performance might turn off some dividend earners but not yield-hungry investors. This dividend titan hasn’t missed a quarterly dividend payment since October 2010.
