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Dividend Coverage: This Asset Management Company Raised Dividend by 27%; Will be Trading Ex-Dividend on June 09, 2017

LONDON, UK / ACCESSWIRE / June 8, 2017 / Pro-Trader Daily takes a closer look at Legg Mason, Inc. (NYSE: LM) as the Company's stock will begin trading ex-dividend on June 09, 2017. In order to capture the dividend payout, investors must purchase the Company's stock one day prior to the ex-dividend date that is latest by June 08, 2017. This would make the individual a shareholder on the respective Company's record thereby entitling the investor to be paid the dividend on the payable date. Are you looking for research on dividend stocks, if so register with us now for your free membership at:

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Today, PRO-TD covers ex-dividend news on LM. Get our free coverage by signing up at:

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Dividend Declared

Alongside its fourth quarter and fiscal 2017 results announced on April 26, 2017, Legg Mason's Board of Directors declared a quarterly cash dividend on its common stock in the amount of $0.28 per share; this represents an increase of 27% on the dividend rate paid on the shares of its common stock during the prior fiscal quarter. The dividend is payable on July 10, 2017, to shareholders of record at the close of business on June 13, 2017. Legg Mason has reported dividend growth for seven straight years.

Dividend Insights

Legg Mason's indicated dividend represents a yield of 2.96%, lower than the average dividend yield for the financial sector of 3.23%, and reflects dividend payout of $1.12 on an annualized basis. Legg Mason last increased its dividend in April 2017, where the Company's Board of Directors raised the quarterly cash dividend on Legg Mason's common stock by 27% to $0.2800 per share from the prior dividend of $0.2200 per share.

Source: Legg Mason IR Page - Dividends

Legg Mason has a dividend payout ratio of 40.6%, meaning that the Company distributes $0.041 for every $1.00 earned, demonstrating that the dividend is sufficiently covered by earnings. As per analysts' estimates Legg Mason is projected to post earnings of $3.21 per share in the coming year, which implies that the Company should be able to comfortably cover its annualized dividend of $1.12.

Moreover, as on March 31, 2017, Legg Mason's cash position was $734 million. Total debt was $2.2 billion and stockholders' equity was $4.0 billion. Having this liquidity cushion would allow the Company to absorb any fluctuations in earnings and pay its dividend without interruption.

About the Company

Legg Mason is a global asset management firm with $731 billion in assets under management as of April 30, 2017. The Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore Maryland.

Recent Development for Legg Mason

On May 23, 2017, Legg Mason, announced it has launched two actively managed, environmental, social, and governance ("ESG") focused ETFs sub-advised by ClearBridge Investments. The ClearBridge Large Cap Growth ESG ETF (NASDAQ: LRGE) seeks to invest in large-capitalization companies with the potential for above average earnings and cash flow growth and a strong commitment to ESG principles. The ClearBridge Dividend Strategy ESG ETF (NASDAQ: YLDE) seeks to invest in high-quality companies with a strong commitment to ESG principles that can pay attractive dividends and have the potential to grow dividend payments over time.

Stock Performance

On Wednesday, June 07, 2017, the stock closed the trading session at $38.13, slightly up 0.16% from its previous closing price of $38.07. A total volume of 772.83 thousand shares have exchanged hands. Legg Mason's stock price surged 3.50% in the last three months, 21.67% in the past six months, and 9.82% in the previous twelve months. Moreover, the stock rallied 27.48% since the start of the year. The stock is trading at a PE ratio of 17.21 and has a dividend yield of 2.47%. At Wednesday's closing price, the stock's net capitalization stands at $3.64 billion.

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