ST. PETERSBURG, Fla. - Raymond James Financial, Inc. (NYSE: NYSE:RJF) announced an increase in its quarterly dividend and a new share repurchase program on Tuesday. The company's board of directors declared a quarterly cash dividend of $0.50 per share on its common stock, marking an 11.1% increase from the prior dividend of $0.45 per share. The dividend is payable on January 16, 2025, to shareholders of record as of January 2, 2025. According to InvestingPro, Raymond (NS:RYMD) James has maintained dividend payments for 40 consecutive years, demonstrating its commitment to shareholder returns. The company's current dividend yield stands at 1.08%.
In addition to the raised dividend, the board also declared a quarterly dividend for its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (NYSE: RJF PrB) at $0.3984375 per depositary share. This dividend is due on January 2, 2025, to shareholders of record on December 16, 2024.
Further bolstering shareholder returns, Raymond James authorized a new stock repurchase program. The company may buy back shares up to an aggregate amount of $1.5 billion, replacing the previous authorization announced on November 30, 2023, which had approximately $644 million remaining as of today. The repurchase transactions can occur in the open market, through privately negotiated transactions, or by other means, depending on various factors, including market conditions and regulatory requirements. InvestingPro data reveals the company's strong financial position, with a "GREAT" financial health score and a current ratio of 6.2, indicating ample liquidity to support these shareholder initiatives.
The new authorization does not have a set expiration date and does not commit the company to repurchase any specific dollar amount or number of shares. The program may be suspended or discontinued at any time.
Raymond James Financial is a diversified financial services firm, offering services ranging from private client group to asset management and banking. The company, which has been public since 1983, operates with approximately 8,800 financial advisors and oversees total client assets of $1.54 trillion. The company has demonstrated strong performance with a 51.37% year-to-date return and trades at a P/E ratio of 13.73. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional ProTips available to subscribers, including insights on earnings growth and profitability metrics.
This announcement is based on a press release statement from Raymond James Financial and contains forward-looking statements regarding future shareholder distributions, which are subject to risks, uncertainties, and assumptions. The company cautions investors not to place undue reliance on these statements, which are not guarantees of future performance.
In other recent news, Raymond James Financial has been making headlines with significant developments. The company reported record fourth-quarter revenues of $3.46 billion and a net income of $601 million, mainly driven by a rise in advisory revenue and a robust investment banking performance. The company also saw total client assets reach a record $1.57 trillion and net new assets of $60.7 billion domestically for the year.
Several analyst firms have adjusted their outlooks on Raymond James following these results. TD Cowen maintained a Hold rating but increased the price target to $150.00, citing the company's potential to achieve projected earnings and price-to-earnings ratio. BofA Securities and Citi also increased their price targets to $152 and $145, respectively, following the company's earnings per share beat.
Raymond James anticipates an additional $5 billion in outflows in the first quarter due to the offboarding of an Office of Supervisory Jurisdiction. However, BofA expects net new assets to normalize, projecting a 5-7% growth rate for the following year. Looking ahead, Raymond James maintains an optimistic outlook for fiscal 2025, expecting growth driven by increases in assets and fee-based accounts.
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