On Jan 9, 2014, Zacks Investment Research upgraded
Waddell & Reed Financial, Inc.
) to a Zacks Rank #1 (Strong Buy).
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WADDELL&REED -A (WDR): Free Stock Analysis
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Why the Upgrade?
Waddell & Reed has been witnessing rising estimates following
the announcement of hike in quarterly dividend and impressive
third-quarter results. Moreover, this investment manager's
earnings growth rate is expected to be 24.2% for 2013.
On Dec 19, 2013, Waddell & Reed increased the quarterly cash
dividend on its Class A common stock by 21% from the prior payout
to 34 cents. The dividend will be paid on Feb 3 to shareholders
of record as of Jan 13.
Waddell & Reed's impressive capital deployment activities
make it an attractive pick for yield-seeking investors. Even
during the financial crisis, when many investment managers
slashed or discontinued dividend payments, the company not only
continued with its disbursement but managed to increase it as
Additionally, on Oct 29, 2013, Waddell & Reed declared
third-quarter earnings of 80 cents per share, which beat the
Zacks Consensus Estimate of 72 cents. Robust results were driven
by top-line growth, partially offset by higher operating
Moreover, over the last 60 days, the Zacks Consensus Estimate for
2013 rose 1.4% to $2.84 per share. Similarly, for 2014, the Zacks
Consensus Estimate increased 2.6% to $3.57 per share over the
same time period.
Other Stocks to Consider
While we prefer Waddell & Reed, other finance stocks with a
Zacks Rank #1 include
Artisan Partners Asset Management Inc.
CIT Group Inc.
BofI Holding, Inc.