Sometimes management can make all the difference. When a firm has top, forward-thinking leaders running it, the long term is often rosy with plenty of future growth, cash flow generation and dividends. In terms of asset management, forward-thinking leadership allows a firm to get ahead of trends at the right time and give investors what they want before they realize it’s what they need.
Luckily for our Best Dividend Stocks List pick in the financial sector, it’s been forward thinking since its founding.
Our pick was one of the first asset managers to embrace technology, including using it to pick stocks, reduce administrative costs and help to streamline operations. Secondly, our pick’s leaders saw the writing on the wall early, with regards to passive investment management. Thanks to some shrewd buys, our pick is now one of the largest providers of index funds and ETFs. This has allowed it funnel trillions in assets onto its books and collect a ton of fee revenue.
But our pick isn’t done yet.
Aside from expanding its use of technology to include artificial intelligence (AI) for risk management, our pick’s forward-thinking leaders have embraced the environmental, social and governance (ESG) movement. Investors have continued to look towards ESG as a future return’s driver, and our pick now offers a host of products in the niche. Meanwhile, it’s using its tech expertise to add ESG to its analysis, research and stock-selection process. With more individual and institutional investors looking seriously at ESG, our pick is poised to become a powerhouse in the sector.
All in all, our asset manager pick continues to both be forward-thinking and to produce ample revenues for its investors.
To summarize, here are five reasons why you should own this stock:
- One of the largest asset managers on the planet with trillions under its umbrella. Total assets grew nearly 40% year-over-year!
- Wide range of offerings, including a diverse index ETF line up, as well as active mutual funds.
- Strong dividend growth throughout its history, with a nearly 14% increase at the start of 2021.
- Moves into AI, risk-control software, and ESG have continued to boost margins and revenues even further.
- Healthy payout ratio of 48% and growing yield of 1.85%.
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