Victory Capital Holdings (VCTR) Could Be a Great Choice

Core Insights - Victory Capital Holdings (VCTR) is a finance stock with a year-to-date price change of -3.47% and currently pays a dividend of $0.49 per share, resulting in a dividend yield of 3.1% [3] - The company's annualized dividend of $1.96 has increased by 26% from the previous year, with an average annual increase of 48.75% over the last five years [4] - The Zacks Consensus Estimate for VCTR's earnings in 2025 is $6.22 per share, indicating a year-over-year earnings growth rate of 16.04% [5] - VCTR has a payout ratio of 35%, meaning it distributes 35% of its trailing 12-month earnings per share as dividends [4] - The company is ranked 2 (Buy) by Zacks, indicating it is viewed as a compelling investment opportunity [6] Industry Context - The Financial - Investment Management industry has a dividend yield of 2.94%, while the S&P 500's yield is 1.49%, positioning VCTR favorably within its sector [3] - Dividends are significant contributors to long-term returns, often accounting for over one-third of total returns [2] - Established firms with secure profits are typically seen as the best dividend options, while high-growth businesses and tech startups rarely offer dividends [6]