The 2008 financial crisis did a lot to shake up the global asset management industry. Some players became stronger, while others fell by the way-side. Those with sound investment and risk management practices have emerged with stronger reputations and are once again rewarding stakeholders.
On such firm is Federated Investors (FII) which offers a dividend yield of around 5%.
Established in 1955 with $78 million in assets, the company grew this figure to an all-time high of $407 billion in 2008. In 1976 it created the first institutional-only money market mutual fund and one of the first municipal bond funds in the US.
The company is one of the world’s leading investment managers with nearly $350 billion in assets under management with products distributed by around 5,300 financial intermediaries and institutions.
On the dividend front the company has a solid history which includes a $2.76 special dividend paid in 2008 and another of $1.26 in 2010. Good years for the company are clearly extended to stockholders.
Reporting first quarter results for 2010, earnings per diluted share came in at $0.38 for the quarter ended March 31, 2010 compared to $0.34 in the previous year. Net income was $42 million for the quarter compared to $35.1 million previously.
While asset managers are in many ways at the mercy of the market for the performance and the ability of the consumer to save, Federated (FII) has shown an ability to manage money through a number of investment cycles.
This ability to control risk, develop appropriate products and retain a focus on rewarding shareholders makes Federated (FII) a good dividend stock for your investment portfolio.
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