Virtus Investment Rewards Shareholders With a 6.7% Dividend Hike

Core Insights - Virtus Investment Partners (VRTS) has announced an annual increase in its quarterly dividend for the eighth consecutive year, declaring a cash dividend of $2.40 per share, which is a nearly 6.7% rise from the previous payout [1][9] - The company has raised its dividend six times in the past five years, with the most recent increase occurring in August 2024 when it was raised by 18% to $2.25 per share [2][9] - VRTS's current dividend yield stands at 4.64%, significantly higher than the industry average of 2.04% [2] Dividend and Capital Distribution - The company's payout ratio is 34% of its earnings, indicating a balance between returning capital to shareholders and retaining earnings for reinvestment [5] - VRTS has a share buyback program, with a total of 5.7 million shares authorized for repurchase since December 2010, and an additional 0.75 million shares authorized in May 2025, with 0.87 million shares remaining available for repurchase as of June 30, 2025 [6][9] Financial Position - As of June 30, 2025, VRTS had total cash and cash equivalents of $172 million and total debt of $231.3 million, with no current debt, indicating a decent liquidity position [7] - The company's capital distribution activities appear sustainable given its liquidity profile [7] Market Performance - Over the past year, VRTS shares have decreased by 8.0%, contrasting with the industry's growth of 19.2% [8]