SEI Investments Company’s SEIC board of directors has announced a semi-annual cash dividend of 49 cents per share, representing an increase of 6.5% from the prior payout. The dividend will be paid out on Jan. 8, 2025, to shareholders on record as of Dec. 27, 2024.

Since the announcement of the hike, shares of SEIC lost nearly 1%. 

Prior to this, the company increased its dividend by 7% to 46 cents per share in December 2023. SEI Investments has raised its semi-annual dividend six times in the last five years. Also, it has a five-year annualized dividend growth rate of 6.94%. Currently, the company's payout ratio is 22% of earnings.

Based on its closing price of $85.83 as of Dec. 13, 2024, SEIC’s current dividend yield is 2.3%.

SEI Investments’ Share Repurchase Program

Apart from regular dividend hikes, the company also has a share repurchase program. In October 2024, SEIC’s board of directors approved a $400 million increase to its stock repurchase program, bringing the total available authorization to approximately $429 million. 

Before this, the company announced an increase in share buyback authorization by $250 million in December 2023. As of Sept. 30, 2024, approximately $30 million worth of authorization remained available.

SEIC's Capital Distribution Plan Seems Sustainable

SEI Investments has a strong balance sheet. As of Sept. 30, 2024, the company had a total debt (comprising long-term operating lease liabilities and other long-term liabilities) of $43.5 million, significantly lower than the cash and cash equivalents of $901.1 million.

Supported by its earnings strength and solid liquidity position, the company is expected to continue with efficient capital deployment activities. Through this, SEI Investments will keep enhancing shareholder value.

SEIC’s Zacks Rank & Price Performance

Shares of SEI Investments have risen 26.6% compared with the industry’s growth of 27% over the past three months.

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Currently, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Other Finance Stocks That Took Similar Steps

Earlier this month, Raymond James RJF announced enhanced capital distribution plans, including a dividend hike and a new share buyback program. 

RJF's board of directors has declared a quarterly cash dividend of 50 cents per share, representing an increase of 11.1% from the prior payout. The new dividend will be paid out on Jan. 16, 2025, to shareholders on record as of Jan. 2, 2025.

Also, RJF’s board authorized the repurchase of its shares of common stock, aggregating to $1.5 billion, with no expiration date. This replaces the previous buyback program of $1.5 billion announced last December. Under the previous program, around $644 million remained as of Dec. 3, 2024.

Orange County Bancorp, Inc. OBT announced a cash dividend of 25 cents per share, an increase of 8.7% from the prior payout. The dividend will be paid out on Dec. 16, 2024, to shareholders of record as of Dec. 4, 2024. 

Before this, OBT increased its dividend by 15% to 23 cents per share in November 2022. It has a five-year annualized dividend growth of 5.75%. At present, its payout ratio is 18% of its earnings.

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