HARTFORD - Virtus Investment Partners, Inc. (NYSE:VRTS), a multi-boutique asset management firm, has announced an increase in its quarterly common stock cash dividend to $2.25 per share, up 18% from the previous $1.90 per share. This marks the company's seventh consecutive year of dividend growth.
The dividend boost reflects the company's solid financial foundation and its ability to generate consistent free cash flow, according to President and CEO George R. Aylward. He emphasized the firm's strong balance sheet, which allows for a continued balanced capital management strategy.
Shareholders of record as of October 31, 2024, will be eligible for the dividend, which is scheduled for payment on November 13, 2024. However, future dividend declarations and the setting of record and payment dates will remain subject to Board approval.
Virtus Investment Partners is known for its unique partnership of boutique investment managers, each offering specialized investment styles and autonomous processes. The firm provides a diverse range of investment management products and services to both individual and institutional investors. It operates with a focus on long-term investment success, offering solutions across various disciplines and product types.
This dividend announcement is based on a press release from Virtus Investment Partners.
In other recent news, Virtus Investment Partners reported an increase in earnings and operating margins, with a significant growth in their ETF platform, which now manages over $2 billion in assets. Despite a decrease in total assets to $174 billion due to market performance and net outflows, the company's operating margin improved to 32.5%, and earnings per share rose to $6.53. The firm continues to maintain a modest debt position, providing considerable capital flexibility for future strategic initiatives.
The company's Retail Separate Accounts and Global Funds also experienced growth, despite industry-wide challenges. However, net outflows amounted to $2.6 billion, primarily occurring in April. Meanwhile, sales declined to $6.1 billion, primarily due to lower sales in Open-end Funds and Institutional.
Virtus Investment Partners is actively evaluating merger and acquisition opportunities, particularly in private markets. The company is focused on expanding offerings in ETFs, Retail Separate Accounts, and Global Funds. Anticipated capital uses include minority interest purchases, potential new CLO, and other product introductions. This is in line with the company's strategy to build out its business in traditional loan-only capabilities, liquid alternatives, private markets, and other capabilities.
InvestingPro Insights
Virtus Investment Partners, Inc. (NYSE:VRTS) has not only raised its dividend, as highlighted in the recent announcement, but it also has a track record of maintaining these payments, having done so for the past 11 years. This consistency in rewarding shareholders is underscored by an 18% increase in the quarterly common stock cash dividend, reflecting the company's robust financial position. The company's ability to sustain such a trend is further supported by an attractive dividend yield of 3.79% as of the last recorded date.
From a valuation standpoint, Virtus Investment Partners appears to be trading at a favorable price with a Price/Earnings (P/E) ratio of 13.15, which dips even lower to 12.46 when adjusted for the last twelve months as of Q2 2024. This could indicate that the stock is reasonably valued in comparison to earnings. Moreover, the company's liquid assets surpass its short-term obligations, which is a positive sign of financial health and stability.
While the company has seen its stock price decline over the last month, with a one-month total return of -12.72%, InvestingPro Tips suggest analysts predict the company will be profitable this year, having been profitable over the last twelve months. This aligns with the firm's stated confidence in its financial foundation and capital management strategy. For investors looking for more detailed analysis, InvestingPro offers additional tips and insights, with a total of 8 InvestingPro Tips available for Virtus Investment Partners at https://www.investing.com/pro/VRTS.
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