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Yahoo
01-06-2025
- Business
- Yahoo
Don't Buy GCM Grosvenor Inc. (NASDAQ:GCMG) For Its Next Dividend Without Doing These Checks
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that GCM Grosvenor Inc. (NASDAQ:GCMG) is about to go ex-dividend in just 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase GCM Grosvenor's shares on or after the 6th of June, you won't be eligible to receive the dividend, when it is paid on the 16th of June. The company's next dividend payment will be US$0.11 per share, on the back of last year when the company paid a total of US$0.44 to shareholders. Calculating the last year's worth of payments shows that GCM Grosvenor has a trailing yield of 3.5% on the current share price of US$12.61. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. GCM Grosvenor distributed an unsustainably high 117% of its profit as dividends to shareholders last year. Without extenuating circumstances, we'd consider the dividend at risk of a cut. Generally, the higher a company's payout ratio, the more the dividend is at risk of being reduced. View our latest analysis for GCM Grosvenor Click here to see the company's payout ratio, plus analyst estimates of its future dividends. When earnings decline, dividend companies become much harder to analyse and own safely. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're discomforted by GCM Grosvenor's 11% per annum decline in earnings in the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. GCM Grosvenor has delivered 16% dividend growth per year on average over the past four years. That's intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. GCM Grosvenor is already paying out 117% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Should investors buy GCM Grosvenor for the upcoming dividend? Not only are earnings per share shrinking, but GCM Grosvenor is paying out a disconcertingly high percentage of its profit as dividends. Generally we think dividend investors should avoid businesses in this situation, as high payout ratios and declining earnings can lead to the dividend being cut. All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now. So if you're still interested in GCM Grosvenor despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For example, GCM Grosvenor has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Globe and Mail
21-05-2025
- Business
- Globe and Mail
GCM Grosvenor to Present at the William Blair 45th Annual Growth Stock Conference on June 4, 2025
CHICAGO, May 21, 2025 (GLOBE NEWSWIRE) -- GCM Grosvenor (Nasdaq: GCMG), a global alternative asset management solutions provider, announced today that Michael Sacks, Chairman and Chief Executive Officer of GCM Grosvenor, will present at the William Blair 45 th Annual Growth Stock Conference on Wednesday, June 4 at 8:40 a.m. CDT. A link to the live audio webcast of the presentation will be available on GCM Grosvenor's public shareholders website and the event website. For those unable to listen to the live audio webcast, a replay will be available for 90 days following the presentation. About GCM Grosvenor GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $82 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform. GCM Grosvenor's experienced team of approximately 550 professionals serves a global client base of institutional and individual investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, Seoul and Sydney. For more information, visit: Public Shareholders Contact Stacie Selinger sselinger@ 312-506-6583
Yahoo
08-05-2025
- Business
- Yahoo
GCM Grosvenor Inc (GCMG) Q1 2025 Earnings Call Highlights: Record Fundraising and Strategic ...
Q : Can you discuss the factors affecting the 5% to 8% growth in private markets management fees for 2025 and what could drive it back to 10%+ in the long term? A : Michael Sacks, CEO, explained that short-term factors include how much of the funds raised go directly to fee-paying AUM versus contracted not yet fee-paying AUM, and the speed of deployment from the latter. Long-term, the outlook remains strong, with significant fundraising increases and a robust pipeline. The ability to meet FRE goals by 2028 remains solid. Incentive fee levels for the industry and GCM Grosvenor Inc ( NASDAQ:GCMG ) are unlikely to reach the levels experienced last year due to challenging equity markets. Market volatility and uncertainty related to trade and tax policy are expected to keep deployment and transaction levels depressed. GCM Grosvenor Inc ( NASDAQ:GCMG ) announced two strategic initiatives: a joint venture called Grove Lane and a strategic partnership in Japan, both expected to contribute significantly to future revenue and profit. The company achieved its highest quarterly fundraising level in over two years, with a total of $2.9 billion. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Story continues Q: What are the biggest opportunities for international fundraising, and how do you see the trend evolving? A: Michael Sacks noted that opportunities are significant globally, with strong demand in all investor channels. The individual investor opportunity, both in the US and internationally, is seen as a tremendous opportunity. Jonathan Levin added that while the business has been about 60%-65% Americas-based, the individual investor channel is expected to grow significantly. Q: Can you elaborate on the SuMi Trust partnership and its potential impact? A: Michael Sacks stated that SuMi Trust is a significant player in Japan, and while the initial capital raise target is modest, the potential is much greater. The partnership is non-exclusive, allowing for other collaborations. There are no current plans for SuMi Trust to increase its stake in GCMG. Q: How does the current market volatility affect your deployment strategy, especially given your strong SMA growth? A: Michael Sacks clarified that while there's less visibility due to policy volatility, the long-term structure of the business remains unchanged. The current slowdown in transaction levels is seen as short-term, with expectations for improvement as policy uncertainties clear. Q: What is the rationale behind the Grove Lane joint venture, and where will initial efforts focus? A: Michael Sacks explained that the JV structure allows for attracting top talent with ownership incentives. The individual investor channel is under-allocated to alternatives, presenting a significant growth opportunity despite current market uncertainties. The JV is structured to mature over time, enhancing distribution capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
