Asset managing is one of the best businesses around. No matter what the market is doing, you collect a fee for your services, creating a very stable base of cash flows. This is true for the latest Best Dividend Growth Stocks Model pick, which has managed to pay increasing dividends for nearly five years. And investors can catch its 1.9% yield before Wednesday, August 31, when the stock goes ex-dividend with a regular payout of $0.3/share.
The win for our pick remains its focus on high-net-worth individuals. Margins for asset management has come under pressure as discount brokerages, free trades and ETFs have hindered profits in the sector. But that’s not the case when it comes to higher-end clients. Thanks to the specialized nature of dealing with wealth, the incorporation of a personal touch within the process can lead to higher margins. For our pick, that’s been great news and has allowed us to profit in recent years.
In the end, its niche continues to be its saving grace and rewards shareholders with strong dividend growth
In order to make room for our asset manager name as well as specialty retailer, we’ve been forced to remove an ad agency and energy stock.
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
