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What To Know Before Buying Gluskin Sheff + Associates Inc (TSE:GS) For Its Dividend

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. In the past 10 years Gluskin Sheff + Associates Inc (TSE:GS) has returned an average of 8.00% per year to investors in the form of dividend payouts. Let’s dig deeper into whether Gluskin Sheff + Associates should have a place in your portfolio. View out our latest analysis for Gluskin Sheff + Associates

How I analyze a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

  • Is it paying an annual yield above 75% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has dividend per share amount increased over the past?

  • Does earnings amply cover its dividend payments?

  • Will it be able to continue to payout at the current rate in the future?

TSX:GS Historical Dividend Yield June 22nd 18
TSX:GS Historical Dividend Yield June 22nd 18

How well does Gluskin Sheff + Associates fit our criteria?

Gluskin Sheff + Associates has a trailing twelve-month payout ratio of 80.41%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 71.19%, leading to a dividend yield of around 6.28%. However, EPS should increase to CA$1.45, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

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Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Dividend payments from Gluskin Sheff + Associates have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends.

Relative to peers, Gluskin Sheff + Associates produces a yield of 9.56%, which is high for Capital Markets stocks.

Next Steps:

Considering the dividend attributes we analyzed above, Gluskin Sheff + Associates is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three essential factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for GS’s future growth? Take a look at our free research report of analyst consensus for GS’s outlook.

  2. Historical Performance: What has GS’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.