While looking for companies with high dividend growth rates I found six companies that have a relatively high rate of growth and wrote about them in the article titled "Six Companies Growing Their Dividends" dated 5 January 2015. One of those companies peaked my interest because it not only has a three year dividend growth rate near 30%, it recently announce it is upping its dividend by 50% and changing its dividend from a quarterly dividend to a monthly dividend.
JMP Group Inc. (JMP), together with its subsidiaries, provides investment banking and asset management services in the United States. The company operates through Broker-Dealer, Asset Management, and Corporate Credit segments. The Broker-Dealer segment offers services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions; and financial advisory services in mergers and acquisitions, restructuring, and other strategic transactions. This segment also provides institutional brokerage services and equity research services to institutional investor clients. The Asset Management segment is involved in the management of a range of pooled investment vehicles, including the hedge funds of funds. The Corporate Credit segment includes the management of collateralized loan obligations, small business loans, and various principal investments. JMP Group Inc. was incorporated in 2000 and is headquartered in San Francisco, California. (Daily Chart)
| Price $7.63 1yr Target $9.72 Analysts 3 1yr Cap Gain 27.39% Dividend $0.22 Yield 2.88% 1yr Est Tot Return 30.27% | Market Cap $156.80 Mil Beta 1.76 EPS (ttm) $0.50 Payout Ratio 44.00% EPS next yr $0.84 P/E 15.26 PEG 0.85 Forward P/E 9.05 | Debt/Equity 0.69 ROA 1.00% ROE 9.30% ROI 7.10% Sales $210.60 Mil Income $12.20 Mil Profit Margin 5.79% |
The JMP Group is a group of specialized companies that conduct full service banking and asset management. The group consists of JMP Securities, Harvest Capital Strategies, and JMP Credit Services.
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JMP Securities is a full-service investment bank that provides equity research, institutional brokerage and investment banking services to growth companies and their investors.
Harvest Capital Strategies LLC is a San Francisco-based, SEC-registered investment adviser with approximately $1.6 billion in alternative assets under management that focuses on long-short equity hedge funds, private equity and middle-market lending.
JMP Credit Advisors LLC is an asset management platform established to underwrite and manage investments in senior secured debt. We currently manage approximately $1.1 billion through three collateralized loan obligations, or CLOs.
Revenues, Earnings and Dividends
| Year 2015 Est 2014 Est 2013 2012 2011 2010 2009 2008 2007 | Revenues $183.13 Mil $173.40 Mil $149.21 Mil $100.92 Mil $111.55 Mil $144.71 Mil $149.48 Mil $81.24 Mil $97.86 Mil | Earnings $0.84 $0.67 $0.16 $0.12 $-0.11 $0.43 $0.49 $-0.53 $0.30 | Dividends $0.42 $0.22 $0.14 $0.13 $0.10 $0.06 $0.05 $0.02 $0.07 | Payout Ratio 50.00% 32.83% 87.50% 108.33% N/A 13.95% 10.20% N/A 23.33% |
| Revenue Growth Rate 1 yr = 47.84% 2 yr = 15.65% 3 yr = 1.01% 4 yr = -0.05% 5 yr = 12.92% | Earnings Growth Rate 1 yr = 33.33% 2 yr = N/A 3 yr = -27.84% 4 yr = -24.41% 5 yr = N/A | Dividend Growth Rate 1 yr = 7.69% 2 yr = 18.32% 3 yr = 32.26% 4 yr = 29.35% 5 yr = 47.57% |
My Perspective
This company doesn't have a long history to base a reliable judgement on, and the history it does have is quite volatile. However it has two very nice things going for it. The estimated one year projections of the revenues, earnings and dividends are growing at a very phenomenal rate and the dividend growth rate in not only spectacular but is in fact increasing going forward. With The JMP Group recently announcing that they are changing from a $0.07 quarterly dividend to a $0.35 monthly dividend, the dividend is being increased by 50% for 2015.
I feel that they are doing this because they have confidence in their future. As a consequence I am currently accumulating a position in this security with the expectations that I will hold the stock as long as the dividends continue to increase.
I feel that they are doing this because they have confidence in their future. As a consequence I am currently accumulating a position in this security with the expectations that I will hold the stock as long as the dividends continue to increase.
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