Canada’s Big Six banks have always been good investments for income investors, but maybe you are looking for something different than Toronto-Dominion Bank or Royal Bank of Canada. If you want a financial firm that isn’t as well known, here is one for you to consider: Gluskin Sheff + Associates Inc. (TSX:GS).
Gluskin Sheff, founded in 1984 and headquartered in Toronto, is a wealth management firm that focuses on high-net-worth clients.
Gluskin Sheff by the numbers
Gluskin Sheff reported fourth-quarters earnings in September of $0.19 per share. This missed industry estimates of $0.21 per share, but it beat 2016’s fourth quarter by 72.73%. The stock boasts a net profit margin of 28.40%, which puts it among the more effective companies in its industry at turning a profit.
The company’s recent earnings history didn’t look quite as good. Over the previous three years, earnings declined by an average of 27.28% per year. It’s nice to see the stock back on the upswing in 2017.
Gluskin Sheff boasts an industry-leading return-on-equity number of 33.88%, so the company is currently doing a good job of taking investor money and creating profits from it.
The stock currently trades around the $16 per share mark, making it a far cheaper buy than any of the Big Six banks. Gluskin Sheff has a trailing P/E ratio of 11.58, so the stock’s earnings aren’t too expensive to buy.
A great dividend yield
The stock shines in its dividend offering. Gluskin Sheff currently pays a quarterly dividend of $0.25 per share for an annual payout rate of $1.00 per share. The dividend yield sits at 6.22% .
The company has paid at least one special cash dividend per year over the past five years that is over and above its quarterly offering — a nice bonus for investors. The payout has also steadily risen over the past five years. It’s always nice to see an increasing dividend.
Investor takeaway
While earnings were looking a little anemic in previous years, Gluskin Sheff is doing well this year. Combined with its stellar dividend payout, this is a stock worth considering for your Foolish portfolio.
