Published Tue, 22 Dec 2020 11:32:35 -0500 on Seeking Alpha
Seeking AlphaDividend Ideas | Financials | BermudaLazard: 4.7% Yield With AUM And Advisory Services GrowthDec. 22, 2020 11:32 AM ET|| About: Lazard Ltd (LAZ)by: Gen AlphaGen Alpha Long Only, Value, Growth, Growth At Reasonable PriceSummaryLazard has seen a rebound in its asset management and advisory services businesses since the first half of the year.
Looking forward, management expects a continuation of elevated M&A activity.
I see further upside potential for the share price, and find the 4.7% dividend yield to be safe and attractive.
Financial services firms have seen a solid recovery since March of this year, and Lazard (LAZ) is no exception. In fact, the stock is now trading 0.6% above where it was at the start of the year. While nobody wants to pay too much for a stock, investors must also accept the fact that circumstances have changed since earlier this year. I still view Lazard as being attractively priced, with a solid dividend yield that far surpasses that of the S&P 500 (SPY). I evaluate what makes Lazard a continued buy at present, so let's get started.
(Note: Lazard issues a Schedule K-1 to investors)
(Source: Company website)
A Look Into Lazard
Lazard may not be a household name, but it is well-known in investment circles as being a leading financial advisory and asset management firm. It has a 170+ year history, and provides advisory services on mergers and acquisitions, corporate restructurings, financial strategy, capital raising, and corporate finance. It also provides asset management services to corporations, governments, organizations, and individuals. Lazard operates in 25 countries on 5 continents, and has $247.6 billion in AUM as of November 2020. In 2019, it generated $2.6B in total revenue.
As seen below, Lazard's revenues have grown at a steady pace over the past two decades. While it's been known to have periods of stagnation, as it's seen in the past couple of years, those periods were subsequently... Read more