An In-Depth Look at Janus Henderson Group PLC's Upcoming Dividend and Financial Health
Janus Henderson Group PLC (JHG, Financial) recently announced a dividend of $0.39 per share, payable on 2024-02-28, with the ex-dividend date set for 2024-02-09. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Janus Henderson Group PLC's dividend performance and assess its sustainability.
What Does Janus Henderson Group PLC Do?
Janus Henderson Group provides investment management services to retail intermediary (54% of managed assets), self-directed (23%) and institutional (23%) clients. At the end of September, active equities (61%), fixed-income (21%), multi-asset (15%) and alternative (3%) investment platforms constituted the company's USD 308.3 billion in assets under management. Janus Henderson sources 59% of its managed assets from clients in North America, with customers from Europe, the Middle East, Africa, and Latin America (31%) and the Asia-Pacific region (10%) accounting for the remainder. Headquartered in London, JHG is dual-listed on the New York Stock Exchange and the Australian Securities Exchange.
A Glimpse at Janus Henderson Group PLC's Dividend History
Janus Henderson Group PLC has maintained a consistent dividend payment record since 2017, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Janus Henderson Group PLC's Dividend Yield and Growth
As of today, Janus Henderson Group PLC currently has a 12-month trailing dividend yield of 5.15% and a 12-month forward dividend yield of 5.15%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Janus Henderson Group PLC's annual dividend growth rate was 2.70%. Extended to a five-year horizon, this rate decreased to 2.30% per year. Based on Janus Henderson Group PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Janus Henderson Group PLC stock as of today is approximately 5.77%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Janus Henderson Group PLC's dividend payout ratio is 0.59.
Janus Henderson Group PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Janus Henderson Group PLC's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Janus Henderson Group PLC's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Janus Henderson Group PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Janus Henderson Group PLC's revenue has increased by approximately 0.80% per year on average, a rate that underperforms approximately 58.31% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Janus Henderson Group PLC's earnings decreased by approximately -4.40% per year on average, a rate that underperforms approximately 63.01% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 0.90%, which underperforms approximately 63.03% of global competitors.
Engaging Conclusion
Considering Janus Henderson Group PLC's consistent dividend payments, modest dividend growth rate, manageable payout ratio, and strong profitability, the company presents a compelling case for income-focused investors. While growth metrics suggest some challenges, the company's financial health remains robust, supporting dividend sustainability. As investors evaluate JHG's potential for their portfolios, they should consider how these financial indicators align with their investment strategy and income requirements. Will Janus Henderson Group PLC continue to be a reliable source of dividends in the years to come? Only time will tell, but the current analysis provides a solid foundation for making an informed decision.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
