Fiera Capital (TSX:FSZ) stock is down 33% in 2025 after the firm slashed its dividend by half earlier this year. The quarterly payout dropped 50% to $0.108 per share, yet still yields 7.4%.
While the move initially shocked investors, analysts believe it is a positive long-term step that will save the firm roughly $46 million annually.
This news arrived alongside a major leadership shakeup. Founder Jean-Guy Desjardins stepped down as CEO in July and was replaced by Maxime Menard, who ran the firm’s Canadian division.
Fiera Capital is also in the midst of a restructuring and closed its Canadian small-cap and microcap strategies this year, moving $1.2 billion in assets to another investment manager.
Let’s see whether you should own this high-dividend TSX stock in December 2025.
Is this TSX dividend stock a good buy?
Fiera Capital ended Q3 with $166.9 billion in assets under management, an increase of 4% sequentially. The uptick in AUM was driven by $900 million in new investments and broader market growth.
Fiera’s private markets business is a key driver of AUM growth, which rose 5% to $22 billion. This segment secured an $800 million initial investment for a new fund dedicated to Canadian infrastructure and real estate.
Although the private markets division accounts for only 13% of the firm’s total assets, it is disproportionately valuable to the business, generating 37% of total revenue.
The public markets segment, which manages $145 billion, saw mixed results. Fiera attracted $800 million in new capital for its internal strategies. But these gains were offset by $700 million in outflows from sub-advised accounts.
Strong investment performance
Investment performance remained strong in the fixed-income segment, with nearly all strategies adding value. However, many active equity strategies struggled to outperform benchmarks in a concentrated market.
Under the leadership of CEO Maxime Menard, Fiera is refocusing its infrastructure teams and seeking to provide more customized investment solutions to institutional clients.
By consolidating its infrastructure debt and equity capabilities, the firm hopes to capture a larger share of what it considers a highly attractive global asset class.
Fiera reported revenue of $167 million in Q3, an increase of 3% sequentially and marginally lower than the year-ago period. Despite a drop in sales, Fiera maintained a healthy adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 30% due to a focus on cost control.
A major priority for the firm is strengthening its balance sheet. During the quarter, Fiera used its free cash flow to repay $33 million of debt, reducing its total net debt to $680 million.
Moreover, Fiera repurchased $3.6 million worth of its own shares in Q3, indicating that management expects the dividend stock to be undervalued.
Is Fiera Capital stock undervalued?
Analysts tracking Fiera Capital stock forecast revenue to increase from $682.75 million in 2025 to $756 million in 2027. In this period, free cash flow is projected to improve from $95 million to $125 million. Given an annual dividend expense of roughly $46 million, the payout ratio should improve from 48% in 2025 to 37% in 2027.
If the TSX dividend stock is priced at six times forward FCF, which is similar to the current multiple, it should gain 16% over the next 12 months. If we account for dividends, cumulative returns could be closer to 24%.
