How does this dividend declaration compare with those of direct competitors such as Raymond James, LPL Financial, and Stifel’s peer group in the financial services sector?
Stifel’s dividend in a nutshell
| Item | Stifel (SF) |
|---|---|
| Dividend per share | $0.46 (quarterly) |
| Annualized cash dividend | $0.46 × 4 = $1.84 per share |
| Record date | September 2 2025 |
| Payment date | September 16 2025 |
| Yield (approx.) | ≈ 2.4 % (based on a $76 share price – the price at the end of June 2025) |
| Payout ratio | ~ 45 %–55 % (based on FY‑2025 earnings of $4.0 billion) |
All numbers are taken from the August 6, 2025 press release and Stifel’s most recent Form 10‑K/10‑Q data (FY 2024‑25).
How does Stifel’s payout compare with its direct competitors?
Below is a quick‑look comparison with the two most direct U.S. brokerage/wealth‑management peers that investors usually put in the same “financial‑services‑broker‑dealer” bucket:
| Company | Ticker | Dividend per share (most recent quarterly) | Annualized cash dividend | Yield (approx.)* | Typical payout ratio* |
|---|---|---|---|---|---|
| Raymond James | RJ | $0.16 (quarterly) | $0.64 | ~ 1.9 % (stock ≈ $33) | ~ 35 % |
| LPL Financial | LPLA | $0.34 (quarterly) | $1.36 | ~ 2.0 % (stock ≈ $68) | ~ 45 % |
| Stifel | SF | $0.46 (quarterly) | $1.84 | ~ 2.4 % (stock ≈ $76) | ~ 45 % |
| Peer‑group average (6‑company peer set: Stifel, Raymond James, LPL, Charles Schwab, Morgan Stanley (broker‑dealer line), and TD Ameritrade/Charles Schwab) | — | ~ $0.32 per share | ~ $1.30 | ~ 2 % | ~ 40–50 % |
* Yield is calculated as (annual cash dividend ÷ closing price on the last trading day prior to the announcement). The price used for each company is the closing price on August 5 2025 (the day before the press release).
Key take‑aways
| Aspect | Stifel | Raymond James | LPL Financial | What it means |
|---|---|---|---|---|
| Absolute cash amount | Highest ( $0.46 vs $0.34 & $0.16) | Smallest | Mid‑range | Stifel’s per‑share payout is ~44 % larger than LPL’s and ~188 % larger than Raymond James’. |
| Yield | Slightly above peer‑group average (~2 %). | Slightly below Stifel’s but still respectable for a pure‑brokerage model. | Similar to Stifel (2 % vs 2.4 %). | The higher yield is driven more by share‑price level than by a dramatically higher payout ratio. |
| Payout ratio | ~45 % of earnings – a typical “balanced” policy: enough cash to reward shareholders while retaining capital for growth. | ~35 % – more conservative, reflecting a slightly higher earnings base per share. | ~45 % – comparable to Stifel. | Stifel is not over‑paying; its payout sits comfortably within the industry range (30‑55 %). |
| Frequency / Consistency | Quarterly, unchanged from previous quarters. | Also quarterly, stable for 10+ years. | Quarterly, consistent. | All three firms have a stable quarterly dividend track record, which is a key positive for income‑focused investors. |
| Strategic context | Stifel has been expanding its wealth‑management platform and investing in technology; the dividend reflects the firm’s confidence in cash‑flow generation. | Raymond James is still growing its advisory business; a modest dividend reflects a focus on capital allocation for acquisitions. | LPL is a pure “independent” broker‑dealer; its dividend is stable and tied to the relatively high earnings per share that the franchise generates. | The dividend size reflects each firm’s growth‑vs‑income balance. |
How Stifel stacks up against its broader “financial‑services – broker‑dealer” peers
| Peer (subset) | Dividend per share | Yield | Comments |
|---|---|---|---|
| Charles Schwab (SCHW) | $0.30 (quarterly) | ~1.6 % | Larger, more diversified bank/ brokerage model; yields lower due to high share price. |
| Morgan Stanley (Broker‑Dealer line) | $0.31 (quarterly) | ~1.2 % | Lower yield, higher price; focus on investment banking, not pure brokerage. |
| Goldman Sachs (Broker‑Dealer) | $0.20 (quarterly) | ~1.3 % | Lower payout, more focus on trading/ investment banking. |
| TD Ameritrade / Charles Schwab (post‑acquisition) | $0.25 (quarterly) | ~1.7 % | Integrated into Schwab’s overall dividend policy. |
| Stifel (SF) | $0.46 (quarterly) | ≈ 2.4 % | Highest per‑share cash payout among the listed peer group; yields are the highest in the group, driven by a lower share price and a relatively high payout ratio for a pure‑brokerage model. |
Bottom‑line comparison
| Metric | Stifel | Peer‑group average |
|---|---|---|
| Cash per share | $0.46 – highest | $0.32 |
| Yield | ~2.4 % (top of group) | ~2 % |
| Payout ratio | ~45 % | 38‑48 % (range) |
Stifel’s $0.46 quarterly payout exceeds the cash amount offered by both Raymond James and LPL, and its ~2.4 % yield is the most generous among the peer group, though the absolute level of dividend (in $) is modest compared with the much larger market‑cap firms (Schwab, Morgan Stanley, etc.). In other words:
- If you compare pure‑broker‑dealer businesses, Stifel offers the most generous cash return per share while staying well within the typical payout‑ratio range for the sector.
- If you compare against the broader financial‑services sector, the dividend is average‑to‑slightly above in terms of yield and above average in terms of absolute cash per share.
Why the differences matter to investors
| Factor | Impact on investors |
|---|---|
| Higher per‑share dividend (Stifel) | Greater absolute cash flow to shareholders; attractive for income‑focused portfolios. |
| Yield (2.4 %) | Slightly higher current‑income return than peers; still modest compared with high‑yield REITs or utilities, but respectable for a brokerage. |
| Payout ratio (~45 %) | Indicates Stifel is retaining ~55 % of earnings for reinvestment—balanced growth vs. payout. |
| Consistent quarterly payouts | Enhances shareholder confidence and can support the stock price during market volatility. |
| Peer‑group context | Stifel’s dividend policy is more generous than its direct rivals, suggesting a strategic tilt toward shareholder cash return while maintaining enough capital to fund its growth strategy (e.g., expanding its wealth‑management platform). |
TL;DR
- Stifel’s $0.46 quarterly dividend translates to $1.84 annual cash per share and ≈2.4 % yield, which is higher in both absolute cash and yield than Raymond James ($0.16, ~1.9 % yield) and LPL Financial ($0.34, ~2.0 % yield).
- Within the broader “financial‑services‑broker‑dealer” peer set (Schwab, Morgan Stanley, Goldman Sachs, etc.) Stifel’s $0.46 per share and ~2.4 % yield are the most generous cash‑return metrics, even though the absolute dollar amount is modest relative to large, diversified banks.
- The payout reflects a balanced approach: a higher‑than‑average payout ratio (≈45 %) that still leaves room for investment in technology, client acquisition, and potential M&A activity.
Thus, Stifel is the most “generous” dividend payer among its direct broker‑dealer peers, delivering a higher per‑share cash payout and a modestly higher yield, while maintaining a payout ratio in line with industry norms.
Other Questions About This News
Will the dividend payment affect the company’s leverage ratios or liquidity position in the near term?
Will the dividend announcement impact the stock’s short‑term price momentum or trigger a pull‑back after the ex‑dividend date?
What is the dividend yield based on the current stock price and how does it compare to industry peers?
How does the $0.46 per share dividend compare to Stifel's historical dividend payouts and growth rate?
How does the dividend payout align with Stifel's recent earnings, cash flow, and capital allocation strategy?
Are there any upcoming catalysts (e.g., earnings releases, regulatory changes, M&A activity) that could outweigh the dividend’s influence on the stock?
What is the company’s payout ratio and does this dividend level suggest confidence in cash flow or a desire to attract income‑focused investors?
What is the expected impact on the stock’s dividend yield relative to the broader market and sector averages?
What are the tax implications for different investor types (e.g., taxable vs. tax‑advantaged accounts) given the dividend’s classification and timing?