9.2% Dividend Yield? Buy This Top-notch Dividend Stock in Bulk!

While some may see small returns as unexciting, truth is, with a solid high-yielding stock like this one, those returns can build a stable financial foundation.

| More on:
Senior uses a laptop computer

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in high-yielding stocks often gets overlooked in favour of growth-focused strategies. Yet there’s something uniquely reassuring about steady income generation. One such stock that deserves attention is Fiera Capital (TSX:FSZ), a Canadian asset management firm that combines consistent dividends with a promising growth trajectory. While some may see small returns as unexciting, the truth is that with a solid high-yielding stock like Fiera, those returns can build a stable financial foundation.

Created with Highcharts 11.4.3Fiera Capital PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Fiera stock

Fiera Capital reported its Q3 2024 earnings recently, showing an 8.2% year-over-year increase in quarterly revenue, reaching $171.7 million. The dividend stock’s net earnings also grew to $12.6 million, compared to $11.1 million in the same period last year. These results highlight a trend of consistent financial performance, demonstrating Fiera’s ability to maintain stability even in uncertain markets.

Speaking of returns, let’s talk about dividends, the crown jewel of Fiera’s appeal. The dividend stock recently declared a quarterly dividend of $0.216 per share. This brings the annual dividend to $0.86 per share, translating to a robust 9.2% yield based on the current stock price. It’s rare to find yields of this magnitude, and even rarer to find them paired with a track record of consistent payments like Fiera’s.

But dividends alone don’t paint the full picture. Fiera Capital has also shown impressive stock performance over the past year. Its stock price has risen by over 90% in the last 52 weeks, thus reflecting growing market confidence in the dividend stock’s strategy and execution. This stock appreciation, combined with the high dividend yield, provides investors with a compelling total return that rivals many growth-focused investments. It’s the best of both worlds: income now and potential for capital growth later.

Future in focus

Looking ahead, Fiera Capital’s future appears bright. The dividend stock reported a 4% increase in assets under management (AUM) during Q3 2024, reaching $165.5 billion. This growth is driven by rising equity and fixed-income markets, as well as the company’s ability to attract new investment mandates. With a diversified portfolio spanning public and private markets globally, Fiera is well-positioned to weather market fluctuations and capitalize on opportunities in emerging asset classes.

From a financial perspective, Fiera manages its debt prudently, with a debt-to-equity ratio of approximately 2.6. While leverage is part of its growth strategy, the dividend stock maintains a balance between seizing opportunities and ensuring financial stability. This prudent management bolsters its ability to sustain dividends, even during economic downturns. Operating cash flow of $139.7 million over the trailing 12 months further underscores its financial resilience.

Critics might point to the company’s high payout ratio, which currently sits at 156%. While this is on the higher side, it’s important to note that Fiera has consistently managed to deliver on its dividend commitments, supported by its steady cash flow and growing revenues. The dividend stock’s historical ability to navigate challenging economic conditions and maintain shareholder returns should provide reassurance to cautious investors.

Bottom line

For those seeking reliable income, Fiera Capital stands as an example of how small, steady returns can compound into significant financial benefits over time. Its high yield, consistent financial performance, and promising growth initiatives make it a stock that punches above its weight in the Canadian dividend space. And with its proven track record, investors can have confidence in Fiera’s ability to deliver value well into the future.

In the end, investing isn’t always about chasing the next big thing. Sometimes, it’s about finding a stock that provides stability and a solid return, allowing you to sleep well at night. Fiera Capital embodies this principle, showing that small returns can be more than alright; they can be exceptional.

Should you invest $1,000 in Docebo right now?

Before you buy stock in Docebo, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Docebo wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Fiera Capital. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

I’d Put $15,000 in These 3 Dividend-Growth Champions for Increasing Income Potential

Want to offset some volatility? Here are three defensive dividend-growth champions that can generate a juicy yield right now.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $7,000

Discover how the Tax-Free Savings Account can be your golden goose for generating cash without losing your investment.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Invest $10,000 in Canadian Value Stocks for Monthly Dividend Income

A $10,000-diversified portfolio of value stocks focusing on dividend safety, yield, growth, and payment schedules can provide a reliable source…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Got $5,000? 5 Income Stocks to Buy and Hold Forever

These income stocks have a solid dividend-payout history that can help you earn stress-free passive income.

Read more »

grow money, wealth build
Dividend Stocks

Why I’d Invest $10,000 in This Undervalued Dividend-Growth Stock for Decades of Income

This undervalued dividend stock offers a high yield of over 8% and can help you earn more than $200 in…

Read more »