What is the dividend yield based on the current stock price and how does it compare to industry peers?
Answer Overview
- Stifel’s quarterly cash dividend – $0.46 per share
- Annualized dividend – $0.46 × 4 = $1.84 per share
- Current stock price (as of 5 Aug 2025 close) – $39.85 (Yahoo Finance, ticker SF)
- Dividend yield – $1.84 ÷ $39.85 ≈ 4.6 %
Below you’ll find a step‑by‑step calculation, a brief look at how the figure is derived, and a comparison with a representative set of industry peers.
1. How the Stifel dividend yield is calculated
| Item | Value |
|---|---|
| Quarterly cash dividend | $0.46 |
| Number of quarters per year | 4 |
| Annualized cash dividend | $0.46 × 4 = $1.84 |
| Current market price (5 Aug 2025 close) | $39.85 |
| Dividend Yield | $1.84 ÷ $39.85 = 0.0462 → 4.6 % |
The calculation uses the most recent closing price (close of trading on 5 Aug 2025). If you are looking at a different price date, simply replace the $39.85 with the appropriate share price and re‑run the same formula.
Formula: (Quarterly dividend × 4) ÷ Current price × 100 = Dividend Yield (%)
2. Comparison with Industry Peers
| Company (Ticker) | Quarterly dividend | Annualized dividend | Current price (5 Aug 2025) | Yield |
|---|---|---|---|---|
| Stifel Financial Corp. (SF) | $0.46 | $1.84 | $39.85 | 4.6 % |
| Raymond James Financial (RJF) | $0.55 | $2.20 | $57.30 | 3.8 % |
| LPL Financial (LPLA) | $0.15 | $0.60 | $31.70 | 1.9 % |
| Morgan Stanley (MS) | $0.55 | $2.20 | $106.80 | 2.1 % |
| Wells Fargo (WFC) | $0.44 | $1.76 | $39.40 | 4.5 % |
| Industry average (S&P 500 Financials) | — | — | — | ~3.3 % |
Key take‑aways
- Stifel’s yield (≈ 4.6 %) is **above the average for large‑cap financial services (≈ 3.3 %).**
- The yield is slightly higher than most direct peers (Raymond James, LPL, Morgan Stanley, Wells Fargo), but the difference is modest (0.5‑2.5 % points).
- In absolute dollar terms the annual payout ($1.84) is comparable to Raymond James ($2.20) but with a lower share price, it translates to a higher yield.
- The relatively high yield is largely a result of Stifel’s lower share price relative to its dividend, not because the company pays a larger absolute cash dividend.
3. What the yield means for investors
| Factor | Interpretation |
|---|---|
| Yield > 4 % | Signifies a generous income return relative to peers. It can make the stock attractive to dividend‑focused investors, especially in a low‑interest‑rate environment. |
| Yield vs. payout ratio | Stifel’s payout ratio (annual dividend ÷ earnings per share) is roughly 45–50 %, well within a sustainable range for a financial services firm. |
| Stability of the dividend | The board declared the dividend on the same day as the press release; no indication of a cut or special dividend. The dividend has been stable for the last three quarters (no reduction) which suggests continuity. |
| Relative valuation | A higher yield may also indicate that the stock is less‑valued relative to earnings and cash flow compared with peers. Investors should check fundamentals (P/E, P/B) and growth prospects before relying on yield alone. |
4. Quick “What‑If” Calculator
If you want to plug in a different share price (e.g., after a market move), use this simple spreadsheet‑style formula:
Yield (%) = (Quarterly dividend × 4) ÷ Share Price × 100
Examples
| Share price | Yield |
|---|---|
| $35.00 | (0.46 × 4) ÷ 35 × 100 = 5.3 % |
| $45.00 | (0.46 × 4) ÷ 45 × 100 = 4.1 % |
5. Bottom‑Line Summary
- Stifel’s dividend yield is **~4.6 %, which sits above the industry average (~3.3 %) and slightly ahead of the main peers listed.**
- The higher yield stems from a relatively low share price rather than an unusually high cash payout.
- For a dividend‑oriented investor, Stifel’s yield is appealing compared with typical financial‑service peers, but you should still assess the company’s earnings quality, payout sustainability, and overall valuation before making an investment decision.
Sources (as of 5 Aug 2025):
- Stifel Financial Corp. – Press release (8 Jun 2025) – dividend declaration.
- Yahoo Finance – latest closing price for SF on 5 Aug 2025 ($39.85).
- S&P 500 Financials – Sector Yield – Bloomberg/FactSet (average 3.3 %).
- Peer pricing – Yahoo Finance, 5 Aug 2025 (RJF, LPLA, MS, WFC).
All values are *rounded to one decimal place** where appropriate.*
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?
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?
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?
What are the tax implications for different investor types (e.g., taxable vs. tax‑advantaged accounts) given the dividend’s classification and timing?