Investment managerInvesco (
) is making shareholders happy on two fronts: It's delivering
growth and higher dividends.
On Tuesday, the Atlanta-based company said its adjusted Q1
earnings climbed 18% to 52 cents a share. That marked its best
performance in seven quarters and it beat views by a nickel.
Invesco's revenue rose 10% to $1.14 billion, slightly edging
expectations. The company had some spotty top-line results in
parts of 2011 and 2012, but has now delivered two straight
quarters of double-digit sales growth.
The company's assets under management (AUM) rose 8% to $729.3
billion in the first quarter from a year ago. Since the end of
2012, AUM grew 6%.
Asset managers have benefited as the stock market rallied in
recent months. The S&P 500 hit a record high Tuesday. During
the quarter, Invesco reported record net inflows of $19.2
Based on its strong results, Invesco raised its quarterly
dividend by 30% to 22.5 cents a share. The new rate represents a
more than 100% increase from levels in March of 2011. Invesco
will pay the dividend June 7 to shareholders of record May
On an annual basis, Invesco pays 90 cents a share, which works
out to a yield of 2.8%. Its yield is higher than that of the
S&P 500, but still one of the lowest in the
Finance-Investment Management group. Companies in the group run
the gamut from giant investment firms to small asset managers
that invest in mortgage-backed securities.
Invesco cleared a 28.59 entry from a cuplike flat base on
March 14, but volume was just mildly above average. Still, the
stock has ridden its 10-week line higher. While Invesco is
extended, investors should watch for pullbacks for a potential
new entry point.