Financial services companyAmeriprise Financial (
), now trading at record highs, has just raised its quarterly
The new dividend, which was declared in April and went into
effect last week, is 52 cents a share, up from 45 cents. It was
also the sixth time Ameriprise has raised the dividend in the
past three years.
At the new rate, the annualized dividend yield is about
The firm is part of an investment banking and brokerage
industry that has been rising slowly in IBD's 197 group rankings.
It ranked No. 42 as of Thursday.
In its first-quarter earnings report, Ameriprise said its
fee-based businesses are leading the company's growth. The firm's
services include retirement planning, mutual funds and
Ameriprise has one of the most steady earnings performance
histories in the industry group. Its three-year Earnings
Stability Factor is 8.
The big-cap company's results were far from steady during the
financial crisis. Results suffered in 2008 and part of 2009. But
Ameriprise didn't cut its dividend.
The wealth management industry is making a comeback after
taking a beating in the financial crisis, according to a study by
Sanford C. Bernstein & Co. quoted in a Reuters article May 6.
The biggest part of the industry's growth is in services for the
The stock's ownership includes an unusual mix of well-regarded
value funds and growth funds.
That's despite an uneven earnings performance in the past four
quarters: -15% and then gains of 11%, 31% and 10%. Sales growth
accelerated modestly in recent quarters.
After upward revisions, analysts expect an 18% EPS rise for
2013 and 16% for 2014.