The board of Houlihan Lokey, Inc. (NYSE:HLI) has announced that it will be paying a dividend of $0.57 on the 15th of June, which is an increase from last year’s dividend. However, the yield is only 1.7%, below the industry average.
Houlihan Lokey’s dividend is well covered by earnings, with a payout ratio of 43% forecasted for next year. The company has been steadily growing its dividend over the years, but its short payment history raises some concerns about its sustainability through a full economic cycle.
Investors may be attracted to Houlihan Lokey’s stock due to its growing earnings per share and stable dividend history. The company looks like a good dividend opportunity, with distributions easily covered by earnings.
While a stable dividend policy can attract investor interest, other factors should be considered when analyzing a company. Houlihan Lokey is seen as a strong income stock with a track record of growing earnings. However, investors should be aware of potential warning signs and consider various factors beyond just dividend payments when making investment decisions.