SEI Investments Announces Dividend Hike: Is It Sustainable?

Core Insights - SEI Investments Company (SEIC) has announced a semi-annual cash dividend of 52 cents per share, marking a 6.1% increase from the previous payout [1][6] - The company has a history of increasing dividends for 24 consecutive years, with a five-year annualized dividend growth rate of 7% [2][6] - SEIC's board approved a $600 million increase to its stock buyback program, raising total authorization to approximately $773.2 million [3][6] - As of September 30, 2025, SEIC has a strong balance sheet with total debt of $43.8 million and cash and cash equivalents of $792.8 million, supporting ongoing capital returns [4][6] - Over the past three months, SEI Investments shares have declined by 4.2%, while the industry has seen a decline of 11.7% [5] Dividend and Share Repurchase - The recent dividend increase to 52 cents per share continues the company's trend of consistent hikes over the past 24 years [2][6] - The current dividend yield stands at 1.25%, based on a closing price of $83.08 [2] - The share repurchase program is part of SEIC's strategy to enhance shareholder value through efficient capital deployment [4][6] Financial Health - SEIC's low payout ratio of 18% of earnings indicates a sustainable capital distribution plan [2] - The company's strong liquidity position, with cash significantly exceeding its debt, supports ongoing dividend and buyback initiatives [4][6]