Investors looking to benefit from Artisan Partners (NYSE:APAM) Asset Management's (NYSE:APAM) upcoming dividend payment have until November 15 to acquire shares and secure the eligibility for its declared dividend of $0.65 per share. This upcoming payout contributes to a total of $2.66 per share over the past year, reflecting a substantial trailing yield of approximately 7.4% based on the current stock price of $35.92.
APAM's dividend policy has been a key focus for its shareholders, especially considering the significant portion of earnings allocated to these payouts. In the last year, the company has directed 76% of its earnings towards dividends, which, while attractive, suggests limited funds for reinvestment and raises concerns about sustainability in the event of a business downturn.
However, APAM's financial performance tells a story of growth and resilience. The company has reported a robust annual earnings increase of 30% over the past five years. In addition to this impressive growth, APAM has demonstrated a commitment to enhancing shareholder value by consistently increasing its dividend—an average hike of 4.5% per year over the last decade.
While these factors position APAM as an appealing option for dividend investors, the importance of due diligence cannot be overstated. Prospective and current investors must weigh the potential risks against the backdrop of the company's earnings growth and dividend history.
The next round of dividends is scheduled for distribution on November 30, offering shareholders another opportunity to partake in APAM's financial success. As the ex-dividend date approaches, market participants will be watching closely to see how this will impact APAM's stock performance in a market that values both yield and growth prospects.
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