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Dividend Hunters Should Consider Lazard Ltd (NYSE:LAZ), With A 5.88% Yield

Over the past 10 years Lazard Ltd (NYSE:LAZ) has grown its dividend payouts from $0.40 to $3.06. With a market cap of US$6.22b, Lazard pays out 64.83% of its earnings, leading to a 5.88% yield. Let me elaborate on you why the stock stands out for income investors like myself. See our latest analysis for Lazard

What Is A Dividend Rock Star?

It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically:

  • It is paying an annual yield above 75% of dividend payers

  • It consistently pays out dividend without missing a payment or significantly cutting payout

  • Its dividend per share amount has increased over the past

  • It is able to pay the current rate of dividends from its earnings

  • It has the ability to keep paying its dividends going forward

High Yield And Dependable

Lazard currently yields 5.88%, which is high for Capital Markets stocks. But the real reason Lazard stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.

NYSE:LAZ Historical Dividend Yield June 22nd 18
NYSE:LAZ Historical Dividend Yield June 22nd 18

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. LAZ has increased its DPS from $0.40 to $3.06 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes LAZ a true dividend rockstar.

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The company currently pays out 64.83% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. However, going forward, analysts expect LAZ’s payout to fall to 48.90% of its earnings, which leads to a dividend yield of 5.17%. However, EPS should increase to $4.34, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

Next Steps:

With Lazard producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward. However, given this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three important aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for LAZ’s future growth? Take a look at our free research report of analyst consensus for LAZ’s outlook.

  2. Valuation: What is LAZ worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether LAZ is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.