Dividend Growth at Janus Henderson Group: An Attractive Investment Opportunity?

Shareholders of Janus Henderson Group can look forward to a dividend payment of $0.39 per share on August 28. This represents a dividend yield of 4.3%, which pleasantly boosts the overall return for investors. While high dividend yields are enticing, their sustainability is paramount. The last dividend payment indicates that Janus Henderson Group generates sufficient earnings to cover the dividend. This suggests that a significant portion of the earnings is being reinvested into the company to promote growth. An earnings per share (EPS) growth of 13.5% is expected in the coming year. If the dividend follows current trends, the payout ratio could be 49% by next year, which is considered sustainable. The dividend of Janus Henderson Group has been stable recently, but a definitive assessment is still pending. From 2017 to the last fiscal year, the annual payment increased from $1.28 to $1.56. This corresponds to a compound annual growth rate (CAGR) of about 2.9%. Since the company has not been paying a dividend for a long time, one should view the growth numbers with caution. Investors might show interest in the stock due to its solid payment history. It is encouraging to see that Janus Henderson Group has increased its earnings per share by 6.4% per year over the past five years. The company distributes a reasonable amount of its profits to shareholders and shows respectable growth, making it a potentially attractive dividend stock. Overall, a consistent dividend is positive, and we are optimistic that Janus Henderson Group can continue this in the future. The dividend has historically been maintained at a reasonable level, although the payout ratio was higher in the past. Therefore, caution is still warranted. It is noteworthy that companies with a consistent dividend policy generate greater investor confidence than those with an irregular one. Nevertheless, investors should consider numerous other factors besides dividend payments when analyzing a company. Interested investors should also look at a warning sign for Janus Henderson Group before investing in this stock. For dividend investors, our curated list of high-yield dividend stocks may also be of interest.