An In-Depth Look at Evercore Inc's Dividend Sustainability and Growth Prospects
Evercore Inc (EVR, Financial) recently announced a dividend of $0.76 per share, payable on 2023-12-08, with the ex-dividend date set for 2023-11-22. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Evercore Inc's dividend performance and assess its sustainability.
What Does Evercore Inc Do?
Evercore is an independent investment bank that derives the majority of its revenue from financial advisory, including merger, acquisition, and restructuring advisory. It also has institutional equities trading, equity underwriting, and investment management businesses that account for around 20% of net revenue. The company was founded in 1996 and went public in 2006. Evercore had approximately 1,800 employees at the end of 2022, and about 75% of its revenue is derived from the United States.
A Glimpse at Evercore Inc's Dividend History
Evercore Inc has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis.
Evercore Inc has increased its dividend each year since 2007. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 16 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Evercore Inc's Dividend Yield and Growth
As of today, Evercore Inc currently has a 12-month trailing dividend yield of 2.07% and a 12-month forward dividend yield of 2.12%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Evercore Inc's annual dividend growth rate was 8.20%. Extended to a five-year horizon, this rate increased to 13.80% per year. And over the past decade, Evercore Inc's annual dividends per share growth rate stands at an impressive 14.30%.
Based on Evercore Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Evercore Inc stock as of today is approximately 3.95%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Evercore Inc's dividend payout ratio is 0.38.
Evercore Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Evercore Inc's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Evercore Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Evercore Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Evercore Inc's revenue has increased by approximately 13.10% per year on average, a rate that outperforms approximately 62.04% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Evercore Inc's earnings increased by approximately 18.00% per year on average, a rate that outperforms approximately 59.89% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 29.00%, which outperforms approximately 79.25% of global competitors.
Concluding Insights on Evercore Inc's Dividend Profile
In conclusion, Evercore Inc's commitment to increasing dividends annually, coupled with a reasonable payout ratio and solid profitability, paints a promising picture for income-focused investors. The company's robust growth metrics further bolster confidence in the sustainability of its dividend payments. With a history of resilience and strategic financial management, Evercore Inc stands as a potentially attractive option for value investors seeking stable dividend income. As the financial sector continues to evolve, will Evercore Inc maintain its dividend achiever status and continue to reward its shareholders? This question remains central to the investment thesis for those considering Evercore Inc as a part of their portfolio. For further analysis and investment screening, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
