Victory Capital Holdings, Inc. (NASDAQ:VCTR) Increases Dividend to $0.50 Per Share

Key Points

• Quarterly dividend raised to $0.50 (a 2.0% increase from $0.49); the ex-dividend/record date is June 10 and the dividend will be paid on June 25, representing a yield of about 2.3%.
• The dividend appears sustainable with a payout ratio of 28.3%, six consecutive years of annual increases, and analysts forecasting $7.29 EPS next year (implying a future payout ratio near 26.9%).
• Shares jumped about 6% on the news after a quarter that beat estimates (EPS $1.78 vs $1.66) with revenue up 61% YoY; the stock trades near $87 with a market cap of $5.58 billion and a PE around 21.5.

Victory Capital Holdings, Inc. (NASDAQ:VCTR - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Stockholders of record on Wednesday, June 10th will be given a dividend of 0.50 per share on Thursday, June 25th. This represents a c) dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Wednesday, June 10th. This is a 2.0% increase from Victory Capital's previous quarterly dividend of $0.49.

Victory Capital has raised its dividend payment by an average of 0.5%per year over the last three years and has increased its dividend annually for the last 6 consecutive years. Victory Capital has a payout ratio of 28.3% indicating that its dividend is sufficiently covered by earnings. Analysts expect Victory Capital to earn $7.29 per share next year, which means the company should continue to be able to cover its $1.96 annual dividend with an expected future payout ratio of 26.9%.

Victory Capital Stock Up 6.0%

Shares of NASDAQ:VCTR opened at $87.19 on Thursday. The firm has a fifty day moving average of $70.20 and a 200 day moving average of $67.52. Victory Capital has a 52-week low of $57.03 and a 52-week high of $83.94. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.47 and a current ratio of 1.47. The firm has a market capitalization of $5.58 billion, a PE ratio of 21.53, a price-to-earnings-growth ratio of 1.18 and a beta of 1.09.

Victory Capital (NASDAQ:VCTR - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The company reported $1.78 EPS for the quarter, beating the consensus estimate of $1.66 by $0.12. Victory Capital had a return on equity of 21.86% and a net margin of 25.27%.The firm had revenue of $374.12 million for the quarter, compared to analyst estimates of $371.09 million. During the same period in the prior year, the company earned $1.45 EPS. The company's revenue was up 61.0% on a year-over-year basis. As a group, research analysts anticipate that Victory Capital will post 6.73 EPS for the current fiscal year.

Victory Capital Company Profile

Victory Capital NASDAQ: VCTR is a global investment management firm that provides a broad range of strategies across equities, fixed income, multi-asset and alternative investments. Serving institutional, intermediary and retail clients, the company delivers tailored solutions through active, research-driven portfolio management. Its product lineup includes traditional mutual funds, separately managed accounts, sub-advisory services and specialized strategies such as ESG-focused and municipal bond portfolios.

Founded in 1988, Victory Capital has expanded its capabilities via both organic growth and strategic acquisitions, integrating experienced investment teams to enhance its offerings in areas like smart beta, global equity and fixed income.

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