Fiera Capital (TSX:FSZ) is a Montreal-based asset management company. Shares of Fiera Capital have climbed 7.7% in 2019 as of close on April 15.
The stock is up 10.8% from the prior year.
Financial stocks took a beating in the final months of 2018, and Fiera was no different. It sunk to a 52-week low of $10.65 in mid-December but has since bounced back after U.S. and Canadian central banks indicated that they would press the pause button on rate hikes. Still, Fiera stock has not rebounded back to its November 2018 highs.
The company released its fourth-quarter and full-year results for 2018 on March 22. Revenues rose 18% year-over-year to $540.3 million and adjusted EBITDA also climbed 18% to $137.5 million.
Assets Under Management (AUM) rose 6% year-over-year as at December 31, 2018 to $136.7 billion. This is an impressive feat considering the major turbulence that hit markets to finish the year. Fiera reported adjusted net earnings of $101.2 million or $1.07 per share compared to net earnings of $99.3 million or $1.21 per share in 2017.
In the fourth quarter Fiera announced a 5% hike to its quarterly dividend to $0.21 per Class A share. This dividend will be payable on May 1, 2019. This represents an attractive 6.9% yield.
Fiera has announced 13 dividend increases over the past seven years. Financials are a risky play in a pricey market that is facing the reality of building economic headwinds, but it is hard to go against Fiera’s tasty dividend. If the yield rises above 7% value and income investors should consider pulling the trigger.
