Dividend.com has added a top asset management firm to the Best Dividend Stocks List and removed a top drug manufacturer from the list.
We’ve all heard the saying, “The house always wins.” While originally applied to casinos and gambling, you could also make the argument that the adage also applies to Wall Street. Managing assets for clients can be a lucrative business. After all, the various managers of mutual funds, ETFs and other accounts collect some hefty fees/expenses no matter what the market is doing. This alone has helped propel our new Best Dividend Stocks List pick over the years and has made it a dividend machine.
But what is keeping our pick still growing is that it happens to be one of the good asset managers on the street.
These days, investors have wised up to the exorbitant fees that Wall Street is charging. Indexing and fiduciary responsibility is in; price gouging is out. For low-cost players like our new pick, the current environment has been very fruitful. Thanks to its top-notch product returns and lower-than-average fees, our new pick has continued to find its way into a variety of retirement plans and investors’ portfolios. This has only boosted its assets under management (AUM) over rivals who have seen their assets shrink. And as assets continue to swell, so have revenues for the firm.
With plans to unveil new non-transparent ETFs and index/passive mutual funds as well as continued success at its active offerings, our pick is poised to keep its crown at the top of the heap.
The best part is that it continues to share the wealth with its own shareholders. Our new pick has been paying an increasing dividend for more than 30 years, and over that time, it’s managed to grow its payout by an annual growth rate of 18%.
All in all, shareholders continue to flock towards the good guys on the street for their investment needs. This will only allow our new pick to prosper further.
To summarize, here are five reasons why you should own this stock:
1. Manages over $1 trillion across 49 different countries, making one of the largest asset managers in the world.
2. Winner from the growing fiduciary movement with target-date fund leadership, new passive options, no sales loads and low-cost funds.
3. No debt and fee-based revenue model produces high margins for the firm.
4. Has grown its dividends for more than 3 decades in a row – with an average of 18% annual CAGR since its IPO.
5. Healthy payout ratio of nearly 37% and growing yield of 2.63%.
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