Who wouldn’t want extra cash on hand? That’s why investing in dividend stocks that pay out consistently are such a strong choice. And of them, Fiera Capital (TSX:FSZ) is an excellent choice. This Montreal-based investment management firm has more than $150 billion in assets under management and a strong reputation for providing clients with diversified and innovative investment solutions.
But what makes FSZ stand out to me is its reliable dividend, which makes the stock appealing if investors don’t want to wait on returns. While returns are certainly a point that every stock could provide, dividends are like a cherry on top. And at 9.44%, this cherry looks mighty juicy.
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Fiera Capital’s business performance
First, let’s get into the company’s business performance. After all, a stock can’t continue to provide a consistent dividend without the balance sheet to support it. Recent earnings from June 2024 reflected some challenges, with a year-over-year earnings drop of 53%. Yet management is actively working to improve profitability, focusing on optimizing the global asset management business and expanding their market presence. The team is led by seasoned professionals with deep industry experience. Their focus on long-term growth through strategic acquisitions and solid relationships with institutional clients has helped FSZ maintain a strong market position.
Fiera’s balance sheet shows some leverage, with a debt-to-equity ratio of 260%. This is definitely something to keep an eye on, though FSZ also has a healthy cash flow, with over $164 million in operating cash flow and nearly $128 million in levered free cash flow. This gives the company the financial flexibility it needs to manage its obligations and sustain dividend payouts.
FSZ stock and dividend
In terms of stock performance, FSZ has climbed over 57% in the past year, showing robust momentum as it reached a 52-week high of $9.23. Investors are taking notice of this growth, especially as FSZ continues to offer attractive dividends alongside a growing share price. It’s a dividend stock that balances income and capital appreciation, making it appealing to a wide range of investors.
Bottom line
Looking ahead, the future of FSZ looks promising. Despite economic uncertainties, the company’s diversified portfolio and experienced management position it well to weather potential market challenges. Investors can expect continued solid performance in both its share price and dividend payments, making it a reliable pick for long-term dividend investors.
All together, Fiera Capital offers a compelling combination of high dividend yield, strong payouts, and growth potential. Its strong management team and impressive stock performance make FSZ a solid addition to any income-focused portfolio, and FSZ’s current dividend yield is significantly higher than the market average.
