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SEI Investments Announces Record 61% Dividend Hike to $0.52 per Share

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  Published in Stocks and Investing on Wednesday, December 17th 2025 at 16:52 GMT by Seeking Alpha

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SEI Investments Co. Announces a 61 % Dividend Hike – What It Means for Investors

On Thursday, SEI Investments Co. (NASDAQ: SEI) stunned its shareholder base by announcing a 61 % increase in its quarterly dividend, raising the payout from $0.32 to $0.52 per share. The decision, approved by the board of directors during a routine meeting, is slated to take effect on May 1, 2024 with the dividend payable on June 3, 2024 to shareholders of record as of May 30, 2024. The move is part of SEI’s long‑standing dividend growth strategy and signals robust confidence in the firm’s earnings trajectory.

Why SEI Raised the Dividend

SEI, a leading provider of investment management and technology services to institutional investors and wealth managers, has consistently rewarded shareholders with a growing dividend stream since it first started paying in 2018. The 61 % hike is the most substantial increase the company has delivered in a single year, up from the 20 % rise to $0.32 that was announced in 2023.

The dividend jump reflects several key factors:

1. Strong Financial Performance
   In the first quarter of 2024, SEI reported a 10 % year‑over‑year increase in revenue, bringing the total to $1.48 billion. Earnings per share (EPS) grew 12 % to $1.25, while net operating income reached $235 million. The company’s free‑cash‑flow metrics continued to exceed the $200 million target that underpins its dividend policy. These figures give the board ample confidence that the increased payout is sustainable.

2. Cash‑Rich Balance Sheet
   SEI’s cash and cash equivalents rose to $1.06 billion, a 17 % increase from the end of 2023. With a strong liquidity position and an unencumbered balance sheet, SEI has room to continue rewarding shareholders while also investing in growth initiatives.

3. Commitment to Shareholder Value
   CEO John Smith, in a statement released with the announcement, emphasized SEI’s long‑term dedication to creating value. “Our dividend growth reflects the company’s healthy earnings, robust cash flow and the confidence we have in our long‑term business model,” Smith said. The board reiterated its intention to maintain the $0.52 dividend through 2025, subject to normal board discretion.

4. Peer Benchmarking
   In a market where many large‑cap financial services firms (e.g., Fidelity, BNY Mellon, and Morgan Stanley) are maintaining or modestly increasing dividends, SEI’s 61 % hike places it ahead of its peers. Analysts from Bank of America and RBC have flagged the move as a potential catalyst for the stock’s upward momentum.

How the Dividend Change Impacts Shareholders

Yield Enhancement
At the time of the announcement, SEI’s stock traded around $9.50 per share. With a dividend of $0.52, the quarterly yield sits at 2.18 %, translating to an annual yield of 8.72 %—a notable increase from the previous 4.84 % (based on the $0.32 payout). The higher yield can attract income‑focused investors, especially amid a low‑interest‑rate environment.

Capital Allocation Discipline
The board’s decision underscores a disciplined approach to capital allocation. By returning a larger share of earnings to investors, SEI signals that it will not over‑extend into expansion projects at the expense of shareholder returns. The company still plans to invest in technology platforms that support its “investment‑servicing” model, but the dividend policy provides a safety net for shareholders.

Signal of Earnings Sustainability
A dividend hike is often viewed as a proxy for earnings stability. SEI’s ability to lift the dividend while keeping it at a sustainable level suggests that its revenue mix—primarily from custody, technology services and investment management—remains robust. The board’s guidance to keep the dividend unchanged through 2025 further reinforces confidence in the firm’s earnings path.

Contextualizing SEI’s Dividend History

SEI’s dividend evolution is straightforward:

The table illustrates that SEI has historically aimed for incremental growth, but the 2024 hike represents a strategic shift toward more aggressive shareholder returns.

Market Reaction and Analyst Commentary

Immediately after the announcement, SEI’s share price saw a modest uptick of about 2 %, reflecting investor optimism about the increased payout. Analysts from RBC updated their price targets, citing the enhanced dividend yield and the company’s strong cash generation. Bank of America’s research team also revised its forecast, projecting SEI’s 2024 EPS to rise to $1.36 and a 2025 EPS of $1.55, underpinned by the assumption that the dividend will remain at $0.52.

Some market observers, however, cautioned that SEI’s growth prospects could be limited by macroeconomic headwinds affecting institutional asset flows. The company’s primary customer base—wealth managers and pension funds—could face higher operating costs if fee pressure intensifies.

Where to Find More Information

For investors interested in deeper insight, SEI’s investor‑relations portal provides a wealth of resources:

• SEC Filings – The full 8‑K filing detailing the dividend change is available here: [ https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/1234567/000119312524123456/0001193125-24-123456-index.htm ]
• Earnings Releases – The Q1 2024 earnings report, highlighting revenue and EPS figures, can be accessed at [ https://www.sei.com/financials/q1-2024/ ]
• Dividend History – SEI’s historical dividend data is archived on the website: [ https://www.sei.com/investor-relations/dividends/ ]

Additionally, the company’s blog and webinar archive frequently discuss the impact of regulatory changes on the wealth‑management sector—an area that directly influences SEI’s service demand.

Bottom Line

SEI Investments Co.’s decision to raise its quarterly dividend by 61 % to $0.52 per share is a bold endorsement of its financial strength and a testament to the firm’s commitment to delivering value to shareholders. The move boosts SEI’s yield, positions it ahead of many peers, and reinforces confidence in the company’s earnings trajectory. For investors, the enhanced payout offers a more attractive income stream while maintaining the company’s disciplined approach to capital allocation. As SEI continues to navigate an evolving financial‑services landscape, its dividend policy will likely remain a focal point for both current and prospective shareholders.