In tune with its efforts to boost stockholders’ return, Waddell & Reed Financial, Inc. (WDR) hiked its quarterly cash dividend on its Class A common stock by 21% over its previous dividend to 34 cents. The dividend will be paid on Feb 3, 2014 to shareholders of record as of Jan 13, 2014.
Waddell & Reed’s history of increasing quarterly dividend reflects its long-term strategy to provide attractive returns to shareholders. Hence, it is a smart pick for investors looking for high dividend yield stocks. Even during the financial crisis when many banks and investment managers slashed or discontinued dividend payments, Waddell & Reed not only continued with its payout but managed to increase it as well.
Apart from regular dividend payments, Waddell & Reed’s has an effective share buyback program in place. The company repurchased around 1.2 million shares for $52.5 million during the first nine months of 2013.
Waddell & Reed’s steady capital deployment activities reflect its strong balance sheet position. As of Sep 30, 2013, cash and cash equivalents were around $623 million compared with $547 million as of Jun 30, 2013. Total stockholders’ equity recorded $612 million, as against $563 million as of Jun 30, 2013.
Apart from Waddell & Reed, some other firms in the finance sector that enhanced shareholders’ value in the recent past include Franklin Resources Inc. (BEN), Lazard Ltd. (LAZ) and Westamerica Bancorp. (WABC). Franklin hiked its quarterly dividend by 20% to 12 cents per share, Westamerica announced a 2.7% increase in its quarterly cash dividend to 38 cents while Lazard declared a special dividend of 25 cents per share on its outstanding Class A common stock.
Waddell & Reed currently carries a Zacks Rank #1 (Strong Buy).
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